Under the Direct Write-Off Method,which of the Following Is Included

question 156

Multiple Choice

Under the direct write-off method,which of the following is included in the entry to write off an uncollectible account?

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

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Definitions:

Pay

The salary or wage that is given to an employee by an employer in exchange for their work.

Dividend Paying

Refers to stocks or securities that regularly distribute a portion of the issuing company’s earnings to shareholders in the form of dividends.

Strike Call

This term may be referring to the strike price of a call option, which is the set price at which the option holder can buy the underlying asset.

Interest Rate

The amount charged by lenders as a percentage of the principal, representing the cost of borrowing money.