The Correct Accounting for Accounts Receivable Accounts with Credit Balances

question 87

Multiple Choice

The correct accounting for accounts receivable accounts with credit balances, provided they are significant, would be:

• A) written off.
• B) moved to the debit side.
• C) reclassified as accounts payable.
• D) corrected by making adjusting entries.

---

Definitions:

Building Relationships

The process of developing meaningful connections with others through communication, trust, and mutual respect.

Time Intervals

Time intervals are durations or periods between two points in time, often used in scheduling, planning, and measuring the passage of time.

Sales Expenses

Sales expenses are the costs incurred directly or indirectly from selling a product or service, including commissions, advertising, and distribution costs.