Law Is

question 3

Multiple Choice

Law is:

• A) a body of religious principles held by all members of society.
• B) a body of principles that society establishes to keep things running smoothly.
• C) always the result of case-law decisions.
• D) derived solely from the United States Constitution.

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Definitions:

Allowance for Doubtful Accounts

Allowance for doubtful accounts is an accounting provision that estimates the amount of receivables that may not be collectible due to customer defaults.

Contra-Revenue

An account on a company's income statement that deducts from gross revenue to arrive at net revenue, including returns, allowances, and discounts.

Bad Debts Expense

This represents the cost associated with accounts receivable that a company deems uncollectible and writes off as a loss.

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including material and labor costs.