Which of the Following Statements About the Allowance for Doubtful

question 50

Multiple Choice

Which of the following statements about the allowance for doubtful debts account is NOT true?

• A) The allowance for doubtful debts account is a contra asset account.
• B) Writing off an account as irrecoverable results in an expense.
• C) The expense from bad debts is effectively matched with the revenue to which it relates.
• D) When an account is written off as a bad debt,the net realisable value of accounts receivable is unchanged.

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