The Allowance Method of Accounting for Uncollectible Accounts Is Required

question 43

Multiple Choice

The allowance method of accounting for uncollectible accounts is required if

• A) the company makes any credit sales.
• B) bad debts are significant in amount.
• C) the company is a retailer.
• D) the company charges interest on accounts receivable.

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Definitions:

Malpractice

A failure by a professional person, like a doctor or lawyer, to provide services with the skill and care that is customary in their profession, resulting in harm to the client or patient.