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:

Zig-zag Conformation

A representation of the spatial arrangement of carbon atoms in saturated hydrocarbons, indicating a sequential alternation in direction.

Alkanes

Saturated hydrocarbons consisting solely of hydrogen and carbon atoms, with single bonds between the carbon atoms, exemplified by molecules such as methane, ethane, and propane.

Freons

A trademarked name for a group of chlorofluorocarbon (CFC) and hydrochlorofluorocarbon (HCFC) gases used primarily as refrigerants and aerosol propellants, now commonly linked to ozone depletion.

Propellants

Chemicals that are used to propel an object by generating gas under pressure; common in rockets and aerosol cans.