A Debit Balance in the Allowance for Uncollectible Accounts

question 100

Multiple Choice

A debit balance in the Allowance for Uncollectible Accounts:

• A)cannot occur.
• B)is the normal balance.
• C)occurs when the actual bad debt write-offs are less that what was estimated.
• D)occurs when the actual bad debt write-offs are greater than what was estimated.

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Definitions:

Profits and Losses

A financial statement that summarizes the revenues, costs, and expenses incurred during a specified period, usually a fiscal quarter or year.

Limited Liability Partnership

An agreement where a number of partners have their liabilities restricted, such that they are not individually accountable for the business's financial obligations.

Limited Liability Company

A flexible form of enterprise that blends elements of partnership and corporate structures, protecting members against personal liability beyond their investment.

General Partnership

A form of business partnership where all partners share both the management and the liability for the company's debts.