If the Credit Balance of the Allowance for Doubtful Accounts

question 211

Multiple Choice

If the credit balance of the Allowance for Doubtful Accounts account exceeds the amount of a bad debt being written off,the entry to record the write-off against the allowance account results in:

• A)An increase in the expenses of the current period.
• B)An increase in current assets.
• C)A reduction in equity.
• D)No effect on the expenses of the current period.
• E)A reduction in current liabilities.

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Definitions:

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