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:

Cognitive Theory

A theory in psychology that emphasizes the importance of mental processes in understanding behavior, including perception, memory, and decision-making.

Dreaming

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Individual Variations

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Hypnosis

A mental state of heightened focus and suggestibility where the individual can experience altered consciousness.