In general, adjustments to customer balances in the accounts receivable master data will be necessary for all of the following except:
A) sales returns and allowances
B) reversals of mispostings and other errors
C) bad debt write-offs
D) estimates of uncollectible accounts

Question

Quizplus · Accepted Answer

Adjustments for estimates of uncollectible accounts are typically recorded as a provision for doubtful debts in the allowance for doubtful accounts, rather than as direct adjustments to customer balances in the accounts receivable master data. The other options directly affect individual customer balances.

In General, Adjustments to Customer Balances in the Accounts Receivable