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Phoenix [80]
3 years ago
6

Events that occur after the December 31, 2021 balance sheet date, but before the balance sheet is issued, and provide additional

evidence about conditions that existed at the balance sheet date and affect the realizability of accounts receivable should be
a. discussed only in the MD&A (Management's Discussion and Analysis) section of the
annual report.
b. disclosed only in the Notes to the Financial Statements.
c. used to record an adjustment to Bad Debt Expense for the year ending December 31,
2013
d. used to record an adjustment directly to the Retained Earnings account
Business
1 answer:
Natalija [7]3 years ago
3 0

the realizability of accounts receivable should be

c. used to record an adjustment to Bad Debt Expense for the year ending December 31,

2013

Explanation:

  • Events that occur after the December 31, 2021 balance sheet date, but before the balance sheet is issued, and provide additional evidence about conditions that existed at the balance sheet date and affect the realizability of accounts receivable should be
  • c. used to record an adjustment to Bad Debt Expense for the year ending December 31,  2013
  • An example of accounts receivable includes an electric company that give bills to its clients after the clients have received the electricity.
  • Accounts receivable are legally acceptable that claims for payment done by a business for goods supplies or services rendered that customers/clients have ordered but not paid for it.

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Answer:

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