An Example of a Reclassification Entry Would Be an Entry

An example of a reclassification entry would be an entry to:

A) increase the allowance for doubtful accounts when it was discovered that a customer had filed for bankruptcy.
B) increase the income tax liability account when it was discovered that the tax rate would be higher than originally estimated.
C) reduce inventory when the client failed to write down its obsolete raw materials.
D) change material credit balances in accounts receivable accounts to accounts payable accounts.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free