When Accounting for Uncollectible Accounts

question 63

Multiple Choice

When accounting for uncollectible accounts,

• A)if the percentage of sales method is in use, any existing balance in the Allowance for Doubtful Accounts is the amount used in the adjusting entry
• B)in current accounting practice, the most frequently used method of recognizing bad debts is the direct write-off method
• C)writing off a specific receivable does not reduce the current ratio if the percentage of ending accounts receivable method is in use
• D)an aging analysis results in reporting accounts receivable at their historical cost on the balance sheet

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Definitions:

Pollution

The infusion of toxins into the natural surroundings, causing detrimental alterations.

Environmental Standards

Regulations and criteria set by authorities concerning pollutants and emissions to preserve environmental quality.

Marginal Benefit

The additional satisfaction or value a consumer receives from consuming one more unit of a good or service.

Pollution

The introduction of contaminants into the natural environment, causing adverse change and harm to habitats and organisms.