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Refer to the figure. Females of certain parasitoid wasps lay their eggs on the larvae of female Drosophila melanogaster fruit flies and the hatched wasp larvae burrow through the fly larva, consuming and killing it. Fruit fly larvae sometimes feed on high alcohol food sources, such as rotting fruit, and are harmed by the alcohol-but any wasp larvae inside them are harmed even more. Kacsoh et al. (2013) found that when wasps were present, adult female fruit flies laid more than 90% of their eggs in high-alcohol foods, whereas when wasps were absent, they laid around 40% of their eggs in high-alcohol foods. Given this background and the experimental data in the figure, which of the following statements is true?
Allowance for Doubtful Accounts
A contra asset account that represents estimated uncollectible amounts from customers, reducing the gross receivables to their net realizable value.
Bad Debts Expense
The cost recognized when a company determines that a customer's loan or receivable account is uncollectible.
Allowance Method
An accounting technique used to estimate and adjust accounts receivable for amounts that are unlikely to be collected.
Carrying Value
The value of an asset as shown on the balance sheet, representing its original cost minus any accumulated depreciation, impairment, or amortization.
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