If the Direct Write-Off Method of Accounting for Uncollectible Receivables

question 112

Multiple Choice

If the direct write-off method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer's account as uncollectible?

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

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Definitions:

Amygdala

Involved in memory, decision-making, and emotional reactions, the amygdala is critical in how we assess and respond to environmental threats and rewards.

Medulla

The medulla is a section of the brainstem involved in autonomic functions such as breathing, heart rate, and blood pressure control.

Hunger-Dampening

The process or effect of reducing or suppressing the sensation of hunger.

Leptin

A hormone produced by adipose (fat) cells that helps to regulate energy balance by inhibiting hunger, thereby influencing body weight and fat mass.