Which of the Following Is Not True About the Allowance

question 105

Multiple Choice

Which of the following is not true about the Allowance for Doubtful Accounts?

• A) It is a contra asset account.
• B) It is a liability account.
• C) It is used instead of reducing accounts receivable directly.
• D) It is debited when uncollectible accounts are written off.
• E) It is credited when bad debts expense is estimated and recorded.

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Definitions:

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A theory in social psychology that explains social change and stability as a process of negotiated exchanges between parties.

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