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Alma Company Uses the Allowance Method of Accounting for Bad

Question 2

Multiple Choice

Alma Company uses the allowance method of accounting for bad debts. Alma:


A) is violating the matching principle.
B) will record bad debt expense only when an account is determined to be uncollectible.
C) will not sell to customers on account anymore.
D) will report accounts receivable in the balance sheet at their net realizable value.

Correct Answer:

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