Which of the Following Statements Is Incorrect in Relation to the Direct

question 7

Multiple Choice

Which of the following statements is incorrect in relation to the direct write-off method of accounting for bad debts?

• A) There is no contra asset account for estimated doubtful debts.
• B) Bad debts are charged as an expense at the time an account is determined to be uncollectable.
• C) The entry to write off bad debts is DR Bad debts expense, DR GST payable, CR Accounts receivable.
• D) Bad debts expense is recorded in the same period in which its related sales revenue is included as income.

---

Definitions:

Glycogenolysis

The biochemical process of breaking down glycogen into glucose, providing a source of energy as needed by the body.

Parathyroid Hormone

This is a compound released by the parathyroid glands, responsible for managing blood calcium concentrations.

Osteoclasts

Osteoclasts are a type of bone cell that breaks down bone tissue, a process important for bone maintenance, repair, and remodeling.

Epinephrine

Also known as adrenaline, a hormone and neurotransmitter that plays a vital role in the body's fight-or-flight response, increasing heart rate, muscle strength, blood pressure, and sugar metabolism.