Which of the Following Statements Regarding Allowance for Doubtful Accounts

question 58

Multiple Choice

Which of the following statements regarding 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:

Tectonic Activity

The movement and interaction of the Earth's lithospheric plates, which can result in earthquakes, volcanic eruptions, and the creation of mountain ranges.

Tidal Forces

The gravitational forces exerted by celestial bodies, leading to the rise and fall of the sea levels on Earth.

Lunar Highlands

The lighter, heavily cratered regions of the Moon, which are elevated several kilometers above the darker, smooth maria.

Heavily Cratered

Having a large number of craters, typically referring to a planetary surface impacted by meteorites or asteroids.