The Allowance for Doubtful Accounts is adjusted:
A)at the end of each accounting period.
B)each time a customer's debt is satisfied.
C)within one year of granting credit to a customer.
D)each time a customer is granted credit.

Question

Quizplus · Accepted Answer

The Allowance for Doubtful Accounts is adjusted at the end of each accounting period to accurately reflect the estimated amount of accounts receivable that will not be collected. This adjustment helps to ensure that the financial statements present a realistic picture of the company's financial position and performance.

The Allowance for Doubtful Accounts Is Adjusted