In Relation to the Direct Write-Off Method of Accounting for Bad

question 64

Multiple Choice

In relation to the direct write-off method of accounting for bad debts, it is not true that:

• A) bad debts are charged as an expense at the time an account is determined to be uncollectable.
• B) the entry to write off bad debts is debit bad debts expense, debit GST collected, credit accounts receivable.
• C) there is no contra asset account for estimated doubtful debts.
• D) bad debts expense is recorded in the same period in which its related sales revenue is included as income.

---

Definitions:

Displacement

The movement of something from its place or position, or the psychological defense mechanism involving the transfer of emotions from the original object to a safer target.

Complex Tones

Sounds that consist of multiple frequencies or harmonics, contributing to the perception of musical timbre and speech sounds.

Musical Instruments

Musical instruments are devices designed to produce musical sounds, ranging from simple flutes and drums to complex electronic synthesizers and digital pianos.

Human Speech Sounds

The auditory elements of language produced by the vocal tract, crucial for verbal communication.