To Record Estimated Bad Debts Under the Direct Write-Off Method

question 59

Multiple Choice

To record estimated bad debts under the direct write-off method:

• A) debit Allowance for Uncollectible Accounts and credit Accounts Receivable.
• B) debit Accounts Receivable and credit Allowance for Uncollectible Accounts.
• C) debit Uncollectible-Accounts Expense and credit Allowance for Uncollectible Accounts.
• D) no journal entry is needed.

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Definitions:

Sublimation

A defense mechanism where socially unacceptable impulses or idealizations are unconsciously transformed into socially acceptable actions or behavior.

Object Relations Theory

A psychoanalytic theory suggesting that relationships and interactions with significant others, especially parents, during infancy shape an individual's personality and relationships in adulthood.

Melanie Klein

A pioneering figure in psychoanalysis, particularly known for her work in child analysis and her theories on the importance of fantasy, play therapy, and the early stages of child development.

Collective Unconscious

A concept in Jungian psychology referring to a part of the unconscious mind which is shared among beings of the same species and contains universal experiences.