A Company Uses the Direct Write-Off Method to Account for Uncollectible

question 45

Multiple Choice

A company uses the direct write-off method to account for uncollectible receivables.Which of the following is included in the entry to write off an uncollectible account?

• A) A credit to the Allowance for uncollectible accounts
• B) A credit to the customer's Account receivable
• C) A debit to Allowance for uncollectible-accounts
• D) No entry is made to write off uncollectible accounts.

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Definitions:

Positive Psychology

A branch of psychology focused on the study of happiness, well-being, and factors that contribute to a fulfilling life.

Eudaimonic Well-Being

A concept of happiness focused on living one's life in a full and deeply satisfying way through the pursuit of meaning and the realization of one's potential.

Meaningful Life

A life perceived to have purpose, significance, and satisfaction, often through connections with others, achievements, and personal growth.

Heidegger

A German philosopher known for his work in phenomenology and existentialism, emphasizing the question of Being and human existence.