If the Allowance for Doubtful Accounts Has a $1,000 Debit

question 55

Multiple Choice

If the Allowance for Doubtful Accounts has a $1,000 debit balance prior to making the end-of-period adjusting entry for bad debts,then it must mean that:

• A)$1,000 more accounts receivables were written off than were estimated back when the prior period's adjusting entry for bad debts was recorded.
• B)$1,000 fewer accounts receivables were written off than were estimated back when the prior period's adjusting entry for bad debts was recorded.
• C)the direct write-off method was used.
• D)the aging method was used.

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Definitions:

Condemning

Expressing strong disapproval or censure of someone or something.

Status Generalization

A process through which differences in members’ status characteristics lead to different performance expectations and, hence, affect patterns of interaction in groups; the tendency for a member’s status inside a group to reflect his or her status outside that group.

Self-fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true due to positive feedback between belief and behavior.

Diffuse Status Generalization

The process by which individuals' status characteristics in one domain influence expectations and interactions in unrelated domains.