If the Direct Write-Off Method Is Used to Account for Uncollectible

question 128

Multiple Choice

If the direct write-off method is used to account for uncollectible accounts,which of the following statements is false?

• A)An allowance account is not used.
• B)No adjustment is made at the end of the year to estimate future uncollectible accounts.
• C)Accounts receivable will be reported at its net realizable value.
• D)Bad debt expense is recorded at the time an actual bad debt is written-off.

Recognize the legal protections against abusive, deceptive, and unfair practices by debt collectors.

Identify the federal laws related to resolving billing disputes, correcting billing mistakes, and challenging inaccurate credit information.

Comprehend how to maintain a healthy credit standing and manage credit accounts effectively.

Understand specific prohibitions and obligations under federal credit laws regarding credit cards, including unrequested cards and unauthorized card use.

---

Definitions:

Working Conditions

The physical and social environment in which employees perform their jobs, including factors such as safety, ergonomics, and workplace culture.

Credit Report

A detailed report of an individual's or company's credit history prepared by a credit bureau.

Bankruptcy

A ruling granted by courts to release businesses or individuals from some or all of their debt.

Chapter 11

A form of bankruptcy involving the reorganization of a debtor's business affairs, debts, and assets, named after the U.S. bankruptcy code 11.