A Company Has an Allowance for Uncollectible Accounts of $1,000,a

question 191

Multiple Choice

A company has an allowance for uncollectible accounts of $1,000,a positive number,at the end of the year,before the adjusting entry is made to record this year's bad debts expense.The allowance account has a positive balance because ________.

• A)the allowance always has a positive balance
• B)the allowance created at the end of last year was too small to cover all of the accounts written off this year
• C)the allowance created at the end of last year was larger than the total of all of the accounts written off this year
• D)the balance in the allowance must always equal bad debts expense for the year.

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The capacity to generate unique and worthwhile concepts.

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