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

question 18

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 Debts Recovered
• B)Bad Debts Expense
• C)Accounts Receivable
• D)Interest Expense

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Definitions:

Social Entrepreneurship

The practice of developing, funding, and implementing solutions to social, cultural, or environmental issues.

Microloans

Small loans offered to people with little to no credit history or collateral, typically aimed at enabling entrepreneurship or self-employment in developing countries.

Collateral

Assets pledged by a borrower to secure a loan or other credit, and subject to seizure in the event of default.

Social Venture Capitals

Investment funds that provide capital to businesses making a positive impact on social issues, focusing on both financial returns and social outcomes.