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

---

Definitions:

Marketing Strategy

A comprehensive plan formulated by a business to achieve specific marketing goals and objectives.

New Customers

Individuals or organizations that have not previously purchased from a business, representing an opportunity for growth and expansion.

Unrelated Products

Products that have no significant connection or complementarity in use, production, or marketing to each other.

Existing Goods

Products that have already been manufactured and are available for sale or distribution.