The bookkeeper recorded the following journal entry Allowance for Doubtful Accou

Question

The bookkeeper recorded the following journal entry

Allowance for Doubtful Accounts

1900

Accounts Receivable - Richard James

1900

Which one of the following statements is false?

There should be written authorization for this transaction from someone who does not have responsibilities related to recording cash.

This entry is only prepared on the last day of the accounting period.

There could be a violation of internal control policies.

James' account was written off because it was determined to be uncollectible.

Allowance for Doubtful Accounts

1900

Accounts Receivable - Richard James

1900

Explanation / Answer

The entry is not prepared on the last day of the accounting period. It can be prepared when the amount is uncollectible. Hence the correct option is

B. This entry is only prepared on the last day of the accounting period.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.