If the Direct Write-Off Method Is Used, the Debit Account

question 110

Multiple Choice

If the direct write-off method is used, the debit account to write off an uncollectible is:

• A) Accounts Receivable.
• B) Bad Debt Expense.
• C) Allowance for Doubtful Accounts.
• D) Sales.

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Definitions:

Sales Receipts

Documents that provide proof of a transaction between a buyer and a seller.

Geometric Mean

The geometric mean is a measure of central tendency that is calculated by taking the nth root of the product of n numbers, often used for rates and ratios.

Growth Rate

The rate at which a company's sales, revenue, or other important metrics increase over time.

Uninsured Senior Citizens

Elderly individuals who do not have health insurance coverage, making them potentially vulnerable to high medical costs.