Under the Allowance Method of Accounting for Bad Debts, Why

question 148

Multiple Choice

Under the allowance method of accounting for bad debts, why must uncollectible accounts receivable be estimated at the end of the accounting period?

• A)To allow the collection department to schedule work for the next accounting period.
• B)To determine the gross realizable value of accounts receivable.
• C)The IRS rules require the company to make the estimate.
• D)To match bad debt expense to the period in which the revenues were earned.

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Definitions:

Anthropometric Measures

Measurements of the body's physical dimensions and composition, used to assess the nutritional status and health of individuals.

Nutritional Screening

The process of identifying individuals who are malnourished or at risk of malnutrition to provide timely nutritional interventions.

Weight History

A record of an individual's body weight over a period of time, relevant for assessing trends and health risks.

Metabolism Of Nutrients

The biochemical processes by which the body converts foods into energy, waste, and the building blocks for proteins, lipids, nucleic acids, and some carbohydrates.