Which Statement About Using the Aging of Accounts Receivable to Estimate

question 117

Multiple Choice

Which statement about using the aging of accounts receivable to estimate bad debt expense is correct?

• A)This method has the same results as estimating the bad debt expense by using the percentage of credit sales.
• B)This method records an adjustment to the allowance account irrespective of the balance in that account, immediately prior to the adjustment.
• C)This method focuses on the income statement.
• D)This method focuses on the balance sheet.

---

Definitions:

Germ Layer

Primary tissue layer of a vertebrate embryo—namely, ectoderm, mesoderm, or endoderm.

Ectoderm

Outermost primary tissue layer of an animal embryo; gives rise to the nervous system and the outer layer of the integument.

Differentiate

To recognize or ascertain what makes something or someone different, or in biology, the process by which cells or tissues change from relatively generalized to specialized kinds, during development.

Derived

Obtained from a specific source or originating from something; made by altering or modifying something else.