Which of the Following Entries Would Be Used to Account

question 81

Multiple Choice

Which of the following entries would be used to account for bad debts using the direct write-off method?

• A)Accounts receivable is debited and Bad debts expense is credited.
• B)Bad debts expense is debited and Allowance for doubtful debts is credited.
• C)Bad debts expense is debited and Accounts receivable is credited.
• D)Allowance for doubtful debts is debited and Bad debts expense is credited.

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Definitions:

Dominant Firms

Companies that have a major portion of market share and can significantly influence market conditions and prices.

New Products

Items or services that have recently been introduced to the market and offer new features, functionalities, or benefits to consumers.

Market Economies

Economic systems in which economic decisions and pricing are guided by the interactions of citizens and businesses rather than by central planning.

Product Innovation

The process of developing new products or significantly improving existing ones to meet consumer needs or open new markets.