Under the Allowance Method, If Uncollectible Account Write-Offs During the Year

question 78

Multiple Choice

Under the allowance method, if uncollectible account write-offs during the year exceed the allowance amount, the balance in allowance for doubtful accounts at year end prior to adjustment:

• A)will be zero.
• B)should be deducted from accounts receivable.
• C)will be a debit.
• D)should be adjusted by debiting it to bring the balance back to zero.

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Definitions:

Audible Air Leak

A situation where air is escaping from a pneumatic system, such as brakes or suspension, identified by a sound indicating a potential malfunction.

Out Of Service (OOS)

A status indicating that a device, vehicle, or system is not operational, either due to malfunction or maintenance requirements.

Slack Adjuster

A component in a vehicle's braking system that adjusts the brakes as needed to compensate for wear and maintain performance.

Air Tanks

Containers used in air brake systems to store compressed air and supply it to the brakes to facilitate stopping or control.