The Balance in the Allowance for Doubtful Debts Account Represents

question 19

Multiple Choice

The balance in the Allowance for doubtful debts account represents:

• A) bad debts written off in the current accounting period.
• B) liquid funds available to meet losses arising from customers becoming insolvent.
• C) an amount that is deducted from the Accounts receivable account to reduce it to the estimated realisable value.
• D) bad debts written off as Accounts receivable considered uncollectable.

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Definitions:

DSM

Diagnostic and Statistical Manual of Mental Disorders, a handbook used by healthcare professionals as a guide to the diagnosis of mental disorders.

Diagnosis

The identification of the nature and cause of an illness or other problem by examination of the symptoms.

ADHD

Attention Deficit Hyperactivity Disorder, a neurodevelopmental disorder characterized by inattention, hyperactivity, and impulsivity.

DSM

The Diagnostic and Statistical Manual of Mental Disorders, a handbook used by healthcare professionals as the authoritative guide to diagnosing mental disorders.