When the Direct Write-Off Method of Recognizing Bad Debt Expense

question 70

Multiple Choice

When the direct write-off method of recognizing bad debt expense is used, the entry to write off a specific customer account would

• A) Increase net income
• B) Have no effect on net income
• C) Increase the accounts receivable balance and increase net income
• D) Decrease the accounts receivable balance and decrease net income

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Definitions:

Freudian Therapist

A psychotherapist who employs the techniques and theories of Freud, focusing on unconscious processes and psychosexual development.

Defence Mechanisms

According to Sigmund Freud, mechanisms through which the ego allows the expression of libidinal desires in a distorted or symbolic form.

Repression

A psychological defense mechanism where unsettling thoughts, memories, or desires are unconsciously pushed from the conscious mind.

Fundamental

Fundamental refers to serving as an essential component or basis for something, being of central importance.