For Each of the Following Questions That Might Appear on an Application

question 45

Essay

For each of the following questions that might appear on an application form, identify them as either (A) appropriate or (B) inappropriate, from a legal perspective.
a.Appropriate
b.Inappropriate
-When was your last physical exam?

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Definitions:

Allowance for Doubtful Accounts

An allowance for doubtful accounts is a contra-account that reduces the total receivables on the balance sheet by the amount that is estimated to be uncollectible.

Bad Debt Expense

The cost associated with accounts receivable that a company does not expect to collect because customers default on their payments.

Allowance Method

An accounting technique used to estimate and account for potential uncollectible accounts receivable and bad debts.

Uncollectible Receivables

Debts owed to a company that are deemed unrecoverable and are written off as a loss because the debtor is unable to pay.