Match Each Description to the Appropriate Term (A-D)

question 179

Multiple Choice

Match each description to the appropriate term (a-d) . Each term may be used more than once.
-When using this method, estimated bad debts are added to the existing allowance balance.

• A)Direct write-off method
• B)Aging of receivables method
• C)Percent of sales method
• D)Allowance method

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Definitions:

Process Cost Systems

An accounting system used to apply costs to similar products that are mass-produced in a continuous fashion, assigning costs to units of product based on the processes they go through.

Specialized Machine

Machinery designed to perform a specific task or function in a manufacturing or production process.

Work in Process Accounts

Accounts that track the costs associated with unfinished goods that are in the process of being manufactured.