Nigel Lighting Uses the direct Charge-Off Method of Recording Bad

question 37

Multiple Choice

Nigel Lighting uses the direct charge-off method of recording bad debts. On Sept. 4, the $300 account balance of Louis Blue was charged off. However, on November 15, Blue paid $70 of the amount previously written off. The entry to record the payment from Blue would include:

• A)debit Accounts Receivable $300; credit Uncollectible Account Expense $300
• B)debit Cash $70; credit Accounts Receivable $70
• C)debit Allowance for Doubtful Accounts $70; credit Accounts Receivable $70
• D)debit Uncollectible Account Expense $70; credit Cash $70

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Definitions:

Intentional Torts

A category of torts that describes civil wrongs resulting from intentional actions by the perpetrator against a victim.

Economic Interests

Economic interests refer to the financial stakes or investments individuals or entities have in certain outcomes or entities, influencing their decisions and actions.

Intentional Torts

Legal wrongs resulting from actions taken deliberately, intending to cause harm to another person, such as assault or defamation.

Comparative Negligence

A legal principle where damages are apportioned according to the degree of fault of each party in a lawsuit involving negligence.