Broadway Inc

question 56

Multiple Choice

Broadway Inc.uses the direct write-off method.Previously,the company had written off the account of M.Douglas in full.Six months later,Broadway collected $600,the full amount due,from M.Douglas.How would Broadway Inc.record this transaction?

• A)Debit Bad Debt Expense for $600 and credit Accounts Receivable-M.Douglas for $600.
• B)Debit Accounts Receivable-M.Douglas for $600 and credit Bad Debt Expense for $600.
• C)Debit Accounts Receivable-M.Douglas for $600,credit Bad Debt Expense for $600,debit Cash for $600,and credit Accounts Receivable-M.Douglas for $600.
• D)Debit Accounts Receivable-M.Douglas for $600 and credit Bad Debt Expense for $600
• E)Debit Cash for $600 and credit Accounts Receivable-M.Douglas for $600

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Definitions:

Goodwill

The intangible asset that arises as a result of the acquisition of one company by another for a premium value.

Persuasive

Designed to convince or influence the audience’s thoughts, beliefs, or actions through argumentation or appeal.

Normative

Relating to an ideal standard or model, or principles of what is considered right and acceptable behavior.

Presenters

Individuals who deliver presentations or speeches in front of an audience.