Which of the following statements about the allowance for doubtful debts account is NOT true?
A) The allowance for doubtful debts account is a contra asset account.
B) Writing off an account as irrecoverable results in an expense.
C) The expense from bad debts is effectively matched with the revenue to which it relates.
D) When an account is written off as a bad debt,the net realisable value of accounts receivable is unchanged.
Correct Answer:
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