When Using the Allowance Method for Accounting for Bad Debts,trade

question 77

Multiple Choice

When using the allowance method for accounting for bad debts,trade receivables is reported on the statement of financial position at the expected net realizable value.When a particular receivable from a customer ultimately is determined to be uncollectible,the recording of this event will do which of the following?

• A)decrease the net realizable value of the trade receivables.
• B)have an effect that is not determinable from the information given.
• C)increase the net realizable value of the trade receivables.
• D)have no effect on the net realizable value of the trade receivables.

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