Which statement concerning the allowance for doubtful debts account is not true? Group of answer choices 1.

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Which statement concerning the allowance for doubtful debts account is not true?

Group of answer choices

1. Allowance for doubtful debts represents cash set aside to cover losses incurred as a consequence of customers being declared bankrupt.

2. Allowance for doubtful debts normally has a credit balance.

3. Allowance for doubtful debts is used to adjust receivables for estimated bad debts because individual debtor's balances cannot be removed from the ledger unless there is indisputable evidence they are bad.

4. Allowance for doubtful debts is a contra-asset account designed to reduce receivables to estimated realisable value.

Posted Date: Nov 19, 2021 12:50 AM

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Which statement concerning the allowance for doubtful debts account is not true? Group of answer choices 1.

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Statement 1 The allowance for doubtful account is basically a type of provision which is ... View the full answer

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