[The Following Information Applies to the Questions Displayed Below

question 10

Multiple Choice

[The following information applies to the questions displayed below.]

On December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudoun uses the allowance method. On February 15, Year 2, one of Loudoun's customers failed to pay his $1,050 account and the account was written off. On April 4, Year 2, this customer paid Loudoun the $1,050.

-Which of the following correctly states the effect of Loudoun Company's February Year 2 entry to write off the customer's account?

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Motivational/Emotion Models

Frameworks that explain how motivation and emotions influence individuals' behavior and decision-making processes.

Behavioral Approaches

Psychological methods focusing on understanding and changing human behavior through reinforcement, punishment, and observational learning.

Systems Theories

A holistic approach to analysis that focuses on the way that a system's constituent parts interrelate and how systems work over time within the context of larger systems.

Cognitive Approaches

Psychological theories focusing on how people process information, think, learn, and remember, influencing behavior and emotional responses.