When a Company Is Using the Direct Write-Off Method and an Account

question 64

Multiple Choice

When a company is using the direct write-off method and an account is written off,the journal entry consists of a:

• A)credit to Accounts receivable and a debit to Interest expense.
• B)debit to Accounts receivable and a credit to Cash.
• C)credit to Accounts receivable and a debit to Bad debts expense.
• D)debit to the Allowance for doubtful debts and a credit to Accounts receivable.

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Definitions:

Notebooks

Books with blank pages used for writing, drawing, or recording notes.

Influence

The capacity to have an effect on the character, development, or behavior of someone or something, or the effect itself.

Demand Curve

A visual chart that displays how the demand for a product varies with its price.

Determinants

Factors that cause changes in the behavior of an economic variable, influencing outcomes in economic models and systems.