The Allowance for Doubtful Accounts Is Necessary Because

question 122

Multiple Choice

The Allowance for Doubtful Accounts is necessary because

• A)when recording bad debt expense it is not possible to know which specific accounts will not pay.
• B)uncollectible accounts that are written off must be accumulated in a separate account.
• C)a liability results when a credit sale is made.
• D)management needs to accumulate all the credit losses over the years.

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Definitions:

Market

The environment in which goods, services, and labor are exchanged, influencing prices, employment rates, and economic conditions.

Compensation Role

The function of compensation in an organization, focusing on how it attracts, motivates, and retains employees through monetary and non-monetary rewards.

UNICEF Store

Retail operations or online shops that sell products to raise funds for UNICEF's missions and programs focused on children's welfare globally.

Chicken-Processing Plant

A facility dedicated to the slaughtering, processing, and packaging of chicken products for consumer consumption.