Jayson Enterprises Uses the Allowance Method to Account for Uncollectible

question 65

Multiple Choice

Jayson Enterprises uses the allowance method to account for uncollectible receivables.When an uncollectible account is written off,________.

• A) the Bad Debt Expense account is debited
• B) no entry is required because bad debt expense is estimated at the end of the accounting period
• C) the write off has no effect on net income
• D) the Allowance for Bad Debts account is credited

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Definitions:

Risky Shift

The phenomenon where groups make riskier decisions than individuals would, due to the diffusion of responsibility and other factors.

Decision Polarization

The phenomenon where a group's decisions become more extreme than the individual members' initial positions, often after a discussion or deliberation process.

Deindividuation

A psychological state in which an individual loses self-awareness and self-restraint, often in group settings.

Social Compliance

The act of adhering to the rules, standards, or laws of society or a specific group, often to fit in or be accepted by the group.