Which of the Following Statements Regarding the Allowance for Doubtful

question 137

Multiple Choice

Which of the following statements regarding the allowance for doubtful accounts is true?

• A)Under the aging of accounts receivable method,bad debt expense is calculated and then added to the beginning balance in the allowance for doubtful accounts.
• B)The allowance for doubtful accounts is a contra-revenue account.
• C)The allowance for doubtful accounts is credited when a specific write-off is recorded.
• D)The allowance for doubtful accounts has a normal credit balance.

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Definitions:

Z-track Method

An injection technique utilized to prevent medication from leaking back through the needle track, especially for irritating or staining medications.

Pneumonia

Inflammation of the lung caused primarily by microbes, chemical irritants, vegetable dust, or allergy.

Acute Inflammation

A rapid immune response to injury or infection, resulting in redness, heat, swelling, and pain in the affected area.

Pertussis

An acute infectious disease characterized by a paroxysmal cough, ending in a whooping inspiration.