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Multiple Choice Question 65
In large companies, the independent internal verification procedure is
often assigned to
computer operators.
management.
internal auditors.
outside CP
8Multiple Choice Question 67
An aging of a company’s accounts receivable indicates that $10,000
are estimated to be uncollectible. If Allowance for Doubtful Accounts
has a $1,100 credit balance, the adjustment to record bad debts for the
period will require a
debit to Bad Debts Expense for $8,900.
credit to Allowance for Doubtful Accounts for $10,000.
debit to Bad Debts Expense for $10,000.
debit to Allowance for Doubtful Accounts for $8,900.
9Multiple Choice Question 71
A reasonable amount of uncollectible accounts is evidence
that the credit policy is too strict.
of poor judgments on the part of the credit manager.