Uptown Company Has Determined That an Account Receivable of $125 $$\begin{array} { | c | r | r | } \hline \text { Bad Debts Expense } & 125 & \\\hline \text { Accounts Receivable } & & 125 \\\hline\end{array}$$

question 74

Multiple Choice

Uptown Company has determined that an account receivable of $125 is uncollectible.The company uses the direct write-off method.Which of the following entries is required to record the write-off?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Bad Debts Expense } & 125 & \\
• \hline \text { Accounts Receivable } & & 125 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Cash } & 125 & \\
• \hline \text { Accounts Receivable } & & 125 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Allowance for Bad Debts } & 125 & \\
• \hline \text { Accounts Receivable } & & 125 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts Receivable } & 125 & \\
• \hline \text { Bad Debts Expense } & & 125 \\
• \hline
• \end{array}\]

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Definitions:

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Multicultural Population

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