To Record Estimated Uncollectible Accounts Using the Allowance Method the Adjusting

question 46

Multiple Choice

To record estimated uncollectible accounts using the allowance method the adjusting entry would be a

• A) debit to Accounts Receivable and a credit to Allowance for Doubtful Accounts.
• B) debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts.
• C) debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable.
• D) debit to Loss on Credit Sales Revenue and a credit to Accounts Receivable.

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Definitions:

Respondeat Superior

A legal doctrine that holds an employer or principal legally responsible for the wrongful acts of an employee or agent, performed within the scope of employment or agency.

Principal

The main individual or group participating in an agreement or deal, or the initial sum of money put in or borrowed, prior to adding interest.

Agent's Torts

Refers to wrongful acts committed by an agent that result in legal liability for the principal under certain conditions.

Vicarious Liability

Legal responsibility assigned to one party for the actions of another, typically in employer-employee relationships.