Multiple Choice
Foothill Construction uses the allowance method for bad debts.If management is overly pessimistic about its ability to collect customer accounts,the company will overstate Bad Debt Expense and:
A) understate net income and days to collect will increase.
B) understate net income but days to collect will decline.
C) overstate net income and days to collect will increase.
D) overstate net income and days to collect will decline.
Correct Answer:
Verified
Correct Answer:
Verified
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