Lett Co.has a probable loss that can only be reasonably estimated within a range of outcomes.No single amount within the range is a better estimate than any other amount.The loss accrual should be
A)zero.
B)the maximum of the range.
C)the mean of the range.
D)the minimum of the range.

Question

Quizplus · Accepted Answer

According to accounting standards, when a loss is probable and can be estimated within a range, but no amount within the range is more likely than any other, the minimum amount in the range should be accrued.

Lett CoHas a Probable Loss That Can Only Be Reasonably Estimated