Which of the Following Is Not True About the Allowance

question 2

Multiple Choice

Which of the following is not true about the Allowance for Doubtful Accounts?

• A)It is a contra asset account.
• B)It is used instead of reducing accounts receivable directly.
• C)It is debited when uncollectible accounts are written off.
• D)It is a liability account.
• E)It is credited when bad debts expense is estimated and recorded.

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Definitions:

Modernity

A cultural and historical period characterized by the move towards industrialization, secularization, rationality, and the nation-state.

Project of Modernity

Refers to the era of modernism characterized by belief in progress and enlightenment through science, reason, and the emancipation of humanity from traditional bindings.

Jurgen Habermas

A German sociologist and philosopher known for his theories on communicative rationality, the public sphere, and the discourse ethics.

Early Modernity

The period roughly from the late 15th to the 18th century, marking the transition from medieval to modern times.