The Ditmas Corp

question 60

Multiple Choice

The Ditmas Corp. uses the allowance method of recording bad debt expense. In 2017, it overestimated the amount of bad debt expense, and recorded an allowance that was too large. At the end of 2018, when it learns that more customers are paying than it expected, it will:

• A) Change the reported expenses for 2017, and re-issue its 2017 reports
• B) Report a lower 2018 bad debt expense than it would have if its 2017 estimate had been accurate
• C) Report a higher 2018 bad debt expense than it would have if its 2017 estimate had been accurate
• D) Ignore the incorrect estimate from 2017, and include only the bad debts related to 2018 sales in the 2018 income statement

---

Definitions:

High Risk

Situations or individuals characterized by a greater likelihood of experiencing harm or adverse outcomes.

Suicidal Client

Refers to an individual receiving mental health services who is experiencing thoughts, ideations, or plans of taking their own life.

Counselor's Office

A designated space where a counselor conducts therapy sessions, consultations, and other professional mental health services.

Unresolved Issues

Refers to ongoing personal, social, or emotional problems that have not been adequately addressed or resolved.