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URGENT! Why might the Allowance for Doubtful Accounts be negative (i.e. have a positive balance on the accounting chart) before recording the year's bad debt
URGENT!
Why might the Allowance for Doubtful Accounts be negative (i.e. have a positive balance on the accounting chart) before recording the year's bad debt expense? ( 2 marks) a. Write-offs in the year were higher than expected. b. The previous allowance was overestimated. c. Write-offs in the year were lower than expected. d. The previous allowance was underestimated. e. Both choices a and b are correct. f. Both choices c and d are correct. g. Both choices b and c are correct. h. Both choices a and d are correct. Which of the following transactions does NOT affect bad debt expense? ( 3 marks) a. giving a cash refund to a customer who returned an item that he had already paid for b. using the aging method to estimate the required Allowance for Doubtful Accounts c. receiving a cheque from a customer whose account receivable was previously written off d. writing off an account receivable e. a sales return, where the original sale was on account f. only choices a, b, and c are correct g. only choices a, b, and d are correct h. only choices b, c, and d are correct i. only choices c, d, and e are correct j. only choices b, d, and e are correct Step by Step Solution
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