Which of the following is not true about the Allowance for Doubtful Accounts?
A. It is credited when bad debts expense is estimated and recorded.
B. It is debited when uncollectible accounts are written off.
C. It is a contra asset account.
D. It is used instead of reducing accounts receivable directly.
E. It is a liability account.
Answer: E
You might also like to view...
When the terms are FOB shipping point, the title passes at the point of origin and the buyer pays the transportation costs
Indicate whether the statement is true or false
The purchase of a property that included land, building, and related improvements is called a lump-sum or basket purchase.
Answer the following statement true (T) or false (F)
Explain in detail how to compute each of the following depreciation methods: straight-line, units-of-production, and double-declining-balance.
What will be an ideal response?
Gulinson Corporation has two divisions: Division A and Division B. Data from the most recent month appear below: Total CompanyDivision A Division BSales$591,000$222,000 $369,000 Variable expenses 275,580 113,220 162,360 Contribution margin 315,420 108,780 206,640 Traceable fixed expenses 195,000 66,000 129,000 Segment margin 120,420$42,780 $77,640 Common fixed expenses 65,010 Net operating income$55,410 The break-even in sales dollars for Division A is closest to:
A. $134,694 B. $487,179 C. $184,531 D. $267,367