Monro Inc Uses the Accrual Method of Accounting

question 110

Multiple Choice

Monro Inc. uses the accrual method of accounting. Here is a reconciliation of Monro's allowance for bad debts for the current year. Which of the following statements is true?

• A) Bad debt expense per books and the deduction for bad debts is $69,650.
• B) Bad debt expense per books and the deduction for bad debts is $88,500.
• C) Bad debt expense per books is $80,000, and the deduction for bad debts is $88,500.
• D) Bad debt expense per books is $88,500, and the deduction for bad debts is $80,000.

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Definitions:

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Language Acquisition Device

A hypothetical module proposed by Noam Chomsky, suggesting humans have an innate ability or predisposition to learn language.

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The guidelines that govern the structure of sentences, phrases, and words in any given language.

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