In 2010,a Firm Produced 100 Units of Good X at $1.In

question 179

Multiple Choice

In 2010,a firm produced 100 units of good X at $1.In 2011,the firm produced 200 units of good X at $0.5.Between 2010 and 2011,the total revenue of producing good X

• A)stayed constant
• B)increased.
• C)might increase,decrease,or stay constant.
• D)decreased.
• E)was equal to zero.

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Definitions:

Uncollectible Account

An account receivable that is considered to be uncollectible and is therefore written off as a loss.

Allowance Method

An accounting technique used to estimate and account for potential uncollectible accounts receivable.

Write-off

The accounting action of declaring that an asset or receivable value is reduced or eliminated, often due to uncollectibility or obsolescence.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the amount of receivables that may not be collectible.