Use the Diagram Above to Answer the Following Questions

question 21

Multiple Choice

Use the diagram above to answer the following questions.
-Identify the letter that indicates the root.

• A) A
• B) B
• C) C
• D) D
• E) E

---

Definitions:

Contra Asset

An account that is used to reduce the value of a related asset, such as accumulated depreciation reducing the book value of fixed assets.

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance, indicating the side which increases the account.

Allowance Method

A financial method that estimates the value of debts unlikely to be collected by determining uncollectible accounts each period's end.

Allowance for Doubtful Accounts

A contra asset account that represents the estimated proportion of accounts receivable that may not be collectable.