[Solved] What Is the Effect of Bad Debts on Revenue Recognition

Question 110
Multiple Choice

What is the effect of bad debts on revenue recognition?

A)The seller must believe it is probable it will collect the amounts it is entitled to collect.
B)Bad debts must be of a remote likelihood in order to recognize revenue.
C)Bad debts are deducted from revenue to calculate net revenue on the income statement,similar to sales returns.
D)Bad debts are ignored when determining whether to recognize revenue,but recognized as an expense on the income statement.

10+ million students use Quizplus to study and prepare for their homework, quizzes and exams through 20m+ questions in 300k quizzes.


Explore our library and get Accounting Homework Help with various study sets and a huge amount of quizzes and questions


Study sets





Upload material to get free access

Upload Now Upload Now
Upload Now

Invite a friend and get free access

Upload NowInvite a friend
Invite a friend

Subscribe and get an instant access

See our plansSee our plans
See our plans