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

question 167

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 their net realizable value.

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Definitions:

Trade Deficit

A condition in which a nation's expenditures on imported goods and services surpass its income from exports, leading to a trade deficit.

Trade Deficit

A situation that occurs when a country's imports of goods and services exceed its exports.

Merchandise Balance

The difference in value between a country's imports and exports of goods.

Services Balance

The difference between a country's exports and imports of services.