Refer to the graph shown. Assume the economy is in short-run equilibrium at point A below potential output. The government opts for an expansionary fiscal policy in an attempt to pull the economy out of the recession. An economist with a Classical view holding the Ricardian equivalence theorem to be practically true would conclude that the economy will most likely end up at point: 
Definitions:
Uncollectible Accounts
Uncollectible accounts are debts owed to a company that are considered uncollectable and are written off as a bad debt expense.
Allowance for Doubtful Accounts
A contra account that represents the estimated amount of accounts receivable which may not be collectible.
Adjusting Entry
An accounting record made to adjust revenues and expenses to match the accounting period they were incurred, ensuring compliance with the accrual basis of accounting.
Allowance Method
An accounting technique used to estimate uncollectible accounts receivable, acknowledging potential losses on credit sales.
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