The Lowery Co

question 58

Multiple Choice

The Lowery Co. uses the direct write-off method of accounting for uncollectible accounts receivable. Lowery has a customer whose accounts receivable balance has been determined to likely be uncollecttible. The entry to write off this account would be which of the following?:

• A) debit Allowance for Doubtful Accounts; credit Accounts Receivable
• B) debit Sales Returns and Allowance, credit Accounts Receivable
• C) debit Bad Debt Expense; credit Allowance for Doubtful Accounts
• D) debit Bad Debt Expense; credit Accounts Receivable

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