Which of the Following Entries Would Be Used to Account

question 129

Multiple Choice

Which of the following entries would be used to account for uncollectible receivables using the allowance method?

• A) Allowance for uncollectible accounts is debited and Uncollectible accounts expense is credited.
• B) Uncollectible accounts expense is debited and Allowance for uncollectible accounts is credited.
• C) Uncollectible accounts expense is debited and Accounts receivable is credited.
• D) Accounts receivable is debited and Uncollectible accounts expense is credited.

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Definitions:

Direct Materials Price Variance

The difference between the actual cost and the standard cost of the materials used in production, reflecting how effectively a company manages its purchasing costs.

Materials Cost Per Yard

The total cost associated with acquiring materials required to produce one yard of a product.

Yards Per Unit

A measurement indicating the amount of yardage (length) required or produced per unit of a product.

Actual Costs

The real or precise cost incurred in the production of goods or in the rendering of services, as opposed to estimated or standard costs.