An Accounting Procedure That (1)estimates and Reports Bad Debt Expense

question 84

Multiple Choice

An accounting procedure that (1) estimates and reports bad debt expense from creditsales during the period of the sales and (2) reports accounts receivable at the amount of cash inflow that is expected from their collection is the:

• A)Allowance method of accounting for bad debts.
• B)Direct write-off method of accounting for bad debts.
• C)Aging of accounts receivable.
• D)Adjustment method for uncollectible debts.
• E)Cash basis method of accounting for bad debts.

---

Definitions:

Tax

A financial charge or levy imposed by a government on individuals or entities to fund public expenditure.

Excise Tax

A tax imposed on specific goods or services, such as tobacco, alcohol, and gasoline, typically intended to discourage their consumption or generate revenue.

Fried Twinkies

A dessert made by deep-frying a Twinkie, often resulting in a crispy exterior and soft, warm interior.

Consumers

Individuals or groups who purchase goods or services for personal use and not for manufacturing or resale.