If Actual Write-Offs Are Significantly Higher or Lower Than Estimated

question 8

True/False

If actual write-offs are significantly higher or lower than estimated uncollectible accounts over a number of periods, a large debit or credit balance will accumulate in the allowance for bad debts account.

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Definitions:

Abiotic Environment

The abiotic environment encompasses all nonliving factors like climate, soil, water, and air, that affect ecosystems and the organisms within them.

Ecological Niche

The role and position a species has in its environment, including all its interactions with the biotic and abiotic factors.

Biological Community

A group of interacting species living together in the same habitat and influencing each other's distribution and abundance.

Abiotic Environment

The non-living chemical and physical components of an environment, such as temperature, light, and mineral nutrients, which affect living organisms.