Under the Income-Statement Approach (Percent-Of-Sales Approach), the Entry to Accrue

question 34

Multiple Choice

Under the income-statement approach (percent-of-sales approach) , the entry to accrue bad-debt expense involves:

• A)a debit to allowance for doubtful accounts and a credit to bad-debt expense.
• B)a debit to bad-debt expense and a credit to allowance for doubtful accounts.
• C)a debit to bad-debt expense and a credit to accounts receivable.
• D)a debit to allowance for doubtful accounts and a credit to accounts receivable.

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Definitions:

Center

In statistics, the central tendency of a dataset, which is a measure that seeks to define the most typical or representative value of the dataset, like the mean, median, or mode.

Sampling Variability

The extent to which the statistic obtained from different samples for the same population varies.

Sample Mean

The average value of a set of observations sampled from a larger population.

Normally Distributed

A data distribution that is symmetrically shaped like a bell curve, with most data points clustering around a central mean value.