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:

Aging Schedules

Timetables in accounting that categorize a company's accounts receivable according to the length of time an invoice has been outstanding.

Overdue Accounts

Financial accounts or receivables that have not been paid by the due date.

Receivables

Amounts owed to a company by its customers for goods or services provided on credit.

Net Float

The difference between checks written against a bank account and those that have been deposited but not yet cleared, affecting the balance.