The Direct Write-Off Method for Uncollectible Accounts Receivable

question 98

Multiple Choice

The direct write-off method for uncollectible accounts receivable:

• A)reports receivables at their net realizable value.
• B)does not use an Allowance for Uncollectible Accounts.
• C)is considered to follow Generally Accepted Accounting Principles.
• D)estimates uncollectible accounts as a percentage of sales.

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Definitions:

Mill

A facility for processing raw materials; historically refers to factories for grinding grain into flour.

Emotions

Complex psychological states that involve three distinct components: a subjective experience, a physiological response, and a behavioral or expressive response.

Intentionality

The property of being directed toward some object or situation in the world (a characteristic of mental states such as emotions or beliefs).

Consciousness

Mental awareness (not to be confused with conscience).