Charles and Charms, a Merchandiser, Has an Account Receivable for $125

question 59

Multiple Choice

Charles and Charms, a merchandiser, has an account receivable for $125 which they now decided to be uncollectible. The merchandiser uses the direct write-off method. Which of the following entries is required to record the write-off?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Bad Debts Expense } & 125 & \\
• \hline \text { Accounts Receivable } & & 125 \\
• \hline
• \end{array}\]
• B) \(\begin{array}{c}
• \begin{array}{|l}
• \hline \text {Cash}\\
• \hline \text {Accounts Receivable}\\
• \hline
• \end{array}
• \begin{array}{|l}
• \hline125\\
• \hline\\
• \hline
• \end{array}
• \begin{array}{|l|}
• \hline\\
• \hline125\\
• \hline
• \end{array}
• \end{array}\)
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Allowance for Bad Debts } & 125 & \\
• \hline \text { Accounts Receivable } & & 125 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts Receivable } & 125 & \\
• \hline \text { Bad Debts Expense } & & 125 \\
• \hline
• \end{array}\]

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