If the "Allowance for Uncollectible Accounts" Balance Is Calculated Using

question 43

Multiple Choice

If the "allowance for uncollectible accounts" balance is calculated using the percentage of sales method,

• A)the auditor determines the year-end adjusting entry based on the amount needed to cover the estimated write-offs for the following year
• B)the auditor determines the year-end adjusting entry based on the amount needed to cover the estimated write-offs for the current year
• C)the client determines the year-end adjusting entry based on the amount needed to cover the estimated write-offs for the current year
• D)the client determines the year-end adjusting entry based on the amount needed to cover the estimated write-offs for the following year

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Definitions:

Flexion

A movement that decreases the angle between two body parts, such as bending a limb at a joint.

Extension

The act of increasing the length, duration, or scope of something beyond the original limit.

Pronation

The inward roll of the foot during normal motion, or the rotational movement of the forearm that turns the palm downward.

Supination

The outward rotation of the forearm or foot, such that the palm or sole faces upwards or forwards.