Select the income statement account(s)that would be affected by a policy choice at the same time as the allowance for doubtful debts balance sheet account.

Question

Quizplus · Accepted Answer

A policy choice related to the allowance for doubtful debts will directly impact the bad debts expense account on the income statement. As the allowance for doubtful debts increases, bad debts expense will increase correspondingly, and vice versa. The other options (B, C, and D) are not typically linked to the allowance for doubtful debts account.

Select the Income Statement Account(s)that Would Be Affected by a Policy