Under the Direct Write-Off Method,the Entry to Write Off an Uncollectible

question 143

Multiple Choice

Under the direct write-off method,the entry to write off an uncollectible account will include ________.

• A) a debit to Bad Debts Expense account
• B) a debit to the customer's Account Receivable
• C) a credit to the Allowance for Bad Debts
• D) No entry is made to write off uncollectible accounts.

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Definitions:

Direct Strategy

A communicative approach where the primary message or intention is presented at the beginning without preambles.

Credit Request

A formal application to a lender or financial institution asking for a loan or credit line.

Indirect Strategy

A method of communication that uses subtlety and nuance, often to avoid confrontation or to convey a message more diplomatically.

Bad-News Messages

Communications designed to convey unfavorable or disappointing information to the recipient.