Which of the Following Statements About the Allowance for Doubtful

question 236

Multiple Choice

Which of the following statements about the Allowance for Doubtful Accounts is correct?

• A)The Allowance for Doubtful Accounts is credited when a specific write-off is recorded.
• B)Under the aging of accounts receivable method,Bad Debt Expense is calculated and then added to the beginning balance in the Allowance for Doubtful Accounts.
• C)The Allowance for Doubtful Accounts is a contra-revenue account.
• D)The Allowance for Doubtful Accounts has a normal credit balance.

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Definitions:

Interpretation

The act of explaining the meaning of something, particularly in the context of translating languages, understanding texts, or analyzing art.

Sensation

The process by which our sensory receptors and nervous system receive and represent stimulus energies from our environment.

Vision

The ability to see; the sense that allows organisms to detect light and perceive the colors, shapes, and depths of their surroundings.

Sensation

Sensation is the process by which sensory receptors and the nervous system receive and interpret stimuli from the environment, such as light, sound, and touch.