In Determining the Adequacy of the Allowance for Uncollectible Accounts

question 76

Multiple Choice

In determining the adequacy of the allowance for uncollectible accounts, the least reliance should be placed upon which of the following?

• A)The credit manager's opinion.
• B)An aging schedule of past due accounts.
• C)Subsequent year collections of amounts in accounts receivable at the balance sheet date.
• D)Ratios calculated showing the past relationship of the valuation allowance to net credit sales.

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Definitions:

Peripheral Nervous System

The section of the nervous system that lies outside the brain and spinal cord, responsible for transmitting signals between the central nervous system and the rest of the body.

Cranial Nerves

Twelve pairs of nerves that emerge directly from the brain, rather than the spinal cord, and supply motor and sensory functions to the head and neck.

Ganglia

Structures containing a collection of nerve cell bodies, typically located outside the brain and spinal cord.

Peripheral Nervous System

The part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord, connecting the CNS to limbs and organs.