When a Company Is Using the Direct Write-Off Method,and an Account

question 192

Multiple Choice

When a company is using the direct write-off method,and an account is written off,the journal entry consists of a ________.

• A) debit to Accounts Receivable and a credit to Cash
• B) credit to Accounts Receivable and a debit to Bad Debts Expense
• C) debit to the Allowance for Bad Debts and a credit to Accounts Receivable
• D) credit to Accounts Receivable and a debit to Interest Expense

---

Definitions:

Cost of Disorder

The economic burden associated with a disorder, including direct costs such as treatment and indirect costs like loss of productivity.

North America

A continent located in the Northern Hemisphere, mainly between the Atlantic and Pacific Oceans, consisting of countries like the United States and Canada.

Developing Schizophrenia

The process leading to the onset of schizophrenia, a chronic brain disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

Percent

A mathematical term expressing a fraction of 100, used to quantify ratios or comparisons.