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When a Company Is Using the Direct Write-Off Method, and an Account

Question 135

Multiple Choice

When a company is using the direct write-off method, and an account is written off, the journal entry consists of a:


A) debit to Accounts Receivable and a credit to Cash.
B) credit to Accounts Receivable and a debit to Bad Debts Expense.
C) debit to the Allowance for Bad Debts and a credit to Accounts Receivable.
D) credit Accounts Receivable and a debit to Interest Expense.

Correct Answer:

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