The Allowance for Doubtful Accounts Is Necessary Because

question 35

Multiple Choice

The Allowance for Doubtful Accounts is necessary because

• A)when recording uncollectible accounts expense, it is not possible to know which specific accounts will not pay.
• B)uncollectible accounts that are written off must be accumulated in a separate account.
• C)a liability results when a credit sale is made.
• D)management needs to accumulate all the credit losses over the years.

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Definitions:

Knowledge Requires

The necessity of certain conditions or elements to possess understanding or awareness about something.

Evidence

The available body of facts or information indicating whether a belief or proposition is true or valid.

Visual Experiences

Perceptions and interpretations of the surrounding environment through the sense of sight.

Remember

The cognitive process of recalling information, experiences, or people from one's past.