If the Direct Write-Off Method of Accounting for Uncollectible Receivables

question 112

Multiple Choice

If the direct write-off method of accounting for uncollectible receivables is used, what general ledger account is credited to write off a customer's account as uncollectible?

• A) Bad Debt Expense
• B) Accounts Receivable
• C) Allowance for Doubtful Accounts
• D) Interest Expense

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Definitions:

External Attributions

The process of attributing the cause of one's own or others' behaviors to external factors or the situation.

Fundamental Attribution Error

The tendency to underestimate situational influences and overestimate personal traits when explaining others' behaviors.

Actor/observer Bias

A cognitive bias that explains differences in how people attribute causes to their own versus others' behavior; typically attributing one's own actions to situational factors and others' actions to personal characteristics.

Internal Attributions

Explanations for people's behaviors based on their internal characteristics, such as personality traits, motives, or attitudes, as opposed to the influence of external circumstances.