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

question 104

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) Uncollectible Accounts Expense
• B) Accounts Receivable
• C) Allowance for Doubtful Accounts
• D) Interest Expense

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Definitions:

Maintenance Supplies

Items and materials used in the routine care and upkeep of machinery, equipment, and facilities.

Factory Overhead

All the indirect costs associated with running a manufacturing facility, such as utilities, maintenance, and salaried personnel, that cannot be directly traced to specific products.

Direct Materials

Raw materials that are directly used in the manufacturing process of a product and can be easily traced to it.

Factory Overhead

All indirect costs related to manufacturing, such as utilities, maintenance, and salaries of indirect labor, not directly tied to production.