Which of the following is not true about the Allowance for Doubtful Accounts?
A. It is debited when uncollectible accounts are written off.
B. It is used instead of reducing accounts receivable directly.
C. It is a liability account.
D. It is a contra asset account.
E. It is credited when bad debts expense is estimated and recorded.
Answer: C
You might also like to view...
"Unexpended Appropriations Balance" may be interpreted as how much a government may continue to spend and remain within its budget.
Answer the following statement true (T) or false (F)
To be a formal leader, one must
a. Be officially designated by the organization b. Have a higher-level degree than other employees c. Have androgynous traits d. Extensive leadership training
After reviewing Brenda's current financial situation, Ronald, her friend, assesses that she has an unpaid credit card balance of $4,500, on which an annual percentage rate of 15% is applicable. In this case, the best advice that Ronald can give Brenda is to:
A. increase the annual percentage rate on her credit cards. B. switch credit card companies as many companies offer benefits such as frequent-flier miles. C. keep using the card and not to worry about the balance because all interest is tax deductible. D. place a high priority on eliminating her credit card balance as quickly as possible.
For many consumers, the pages near the back of magazines with dozens of very small black and white advertisements exceed their
A. channel capacity. B. threshold of awareness. C. decoding abilities. D. transmission limitations. E. noise limit.