A Company Who Uses the Allowance Method, Writes-Off a Receivable

question 128

Multiple Choice

A company who uses the allowance method, writes-off a receivable of $2,000. Prior to the journal entry, the balance in the Allowance for Uncollectible Accounts was $18,432. After the entry to write-off the receivable is made, the balance in the Allowance for Uncollectible Accounts will be:

• A) $2,000.
• B) $12,432.
• C) $16,432.
• D) $20,432.

---

Definitions:

P Chart

A type of control chart used for monitoring the proportion of defective items in a process over time, useful in quality control.

Standard Deviation

An index of the amount of variability in a set of data points, indicating average distance from the dataset's mean value.

Boutique Hotel

A small and stylish hotel that offers personalized service and is often situated in a fashionable or unique setting.

Check Guests

The practice of verifying the identity and booking details of guests in hospitality settings such as hotels.