Which Document or Record Is Used in the Write-Off of Uncollectible

question 9

Multiple Choice

Which document or record is used in the write-off of uncollectible accounts classes of transactions?

• A) general journal
• B) remittance advice
• C) sales transaction file
• D) sales order

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Definitions:

Ending Equity

The value of an owner's interest in a property or a business at the end of an accounting period after all debts have been subtracted.

Retained Earnings

A portion of company profits not paid out as dividends but reinvested in the business, used for debt payment, or saved as cash reserves.

Profits

The financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to maintain the operation.

Re-Invested

Capital or earnings that are put back into a business or investment to support growth or generate additional revenue.