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

question 135

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)debit to Accounts Receivable and a credit to Cash.
• B)credit to Accounts Receivable and a debit to Bad Debts Expense.
• C)debit to the Allowance for Bad Debts and a credit to Accounts Receivable.
• D)credit Accounts Receivable and a debit to Interest Expense.

---

Definitions:

Lateral Flexion

A movement that bends the spine sideways to the left or right.

Hyperextension

An excessive extension of a limb or part beyond its normal limit, often resulting in injury.

Pronation

The rotation of the forearm or foot so that the palm or sole is facing downwards or backwards.

Cubital Joint

Also referred to as the elbow joint, it is a complex hinge joint involving the humerus, radius, and ulna bones of the arm.