Under the Allowance Method,when a Company Determines That a Specific

question 66

Multiple Choice

Under the allowance method,when a company determines that a specific customer's Accounts Receivable will not be collected,its accounting department will debit:

• A)Uncollectible-Account Expense and credit Accounts Receivable.
• B)Accounts Receivable and credit Allowance for Uncollectible Accounts.
• C)Allowance for Uncollectible Accounts and credit Uncollectible Account Expense.
• D)Allowance for Uncollectible Accounts and credit Accounts Receivable.

---

Definitions:

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to buy at different price levels, over a specific time period.

Economic Resource

An asset used to produce goods and services that can provide economic benefit.

Money Balances

Refers to the amount of money held by an individual or entity in the form of cash or bank deposits.

Capital Resource

A capital resource is an asset utilized by a company to produce goods and services, such as buildings, machinery, and equipment.