One Might Infer from a Debit Balance in Allowance for Uncollectible

question 71

Multiple Choice

One might infer from a debit balance in Allowance for Uncollectible Accounts that

• A)a posting error has been made.
• B)Uncollectible Accounts Expense has been overestimated.
• C)the accounts receivable aging method apparently is being used.
• D)more has been written off than had been estimated.

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Definitions:

Constitution

The basis upon which a state is organized, and the powers of its government defined.

Promissory Note

A financial tool comprising a formal pledge by one entity to compensate another entity with a certain amount of money, which can be requested at any time or on a predefined future date.

Negotiate

To discuss something in an attempt to reach agreement, especially in business or political contexts.

Properly Drawn

A term indicating that a document, especially a legal document, has been prepared correctly and in accordance with all necessary formalities.