Where an Allowance for Doubtful Debts Account Is Maintained,the Accounting

question 6

Multiple Choice

Where an allowance for doubtful debts account is maintained,the accounting entry to write off a bad debt is:

• A) debit bad debts; credit accounts receivable
• B) debit allowance for doubtful debts; credit accounts receivable
• C) debit doubtful debts expense; credit accounts receivable
• D) none of the above

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Definitions:

Randomly Selected

A process of selection in which each member of a set has an equal probability of being chosen.

Probability P

The likelihood of a specific event occurring, often denoted as a number between 0 and 1.

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean, indicating how spread out the data points are.

Margin Of Error

The range within which the true value lies in statistical sampling, with a certain level of confidence.