To Ensure That the Allowance for Doubtful Accounts Account Does

question 74

Multiple Choice

To ensure that the Allowance for Doubtful Accounts account does not become materially misstated over time,companies revise overestimates of prior periods by:

• A)recording a retroactive correcting entry.
• B)lowering estimates in the current period.
• C)increasing estimates in the current period.
• D)notifying the users of its financial statements of the error.

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