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:

Preventive Maintenance

Maintenance activities performed regularly on equipment to reduce the likelihood of it failing, focusing on preventing problems before they occur.

Optimal Maintenance Policy

is a strategy developed to ensure that equipment and facilities are kept in the best possible condition, balancing costs and benefits to achieve the most efficient and effective maintenance operations.

Preventive Maintenance

Scheduled maintenance tasks performed on equipment and machinery to prevent unexpected breakdowns and ensure smooth operation.

Task Performed

The actions or activities that have been completed to achieve a specific objective or outcome.