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.

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Definitions:

Depression

A mood disorder characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.

Acetylcholine

A neurotransmitter in the central and peripheral nervous systems that plays a key role in muscle activation and memory.

Muscle Contraction

The process in which muscle fibers shorten or lengthen, producing movement or maintaining posture.

Neurotransmitter

Chemicals in the nervous system that transmit signals across a chemical synapse from one neuron (nerve cell) to another 'target' neuron.