In its december 31 2009 financial statements e-z prices, Ask an Expert

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In its December 31, 2009 financial statements, E-Z Prices estimated that losses on its current receivables would be $10.2 million. During 2010, E-Z Prices determined that the losses on the Dec. 31, 2009, receivables were actually $12.4 million. Ignoring taxes, E-Z Prices would report, in its 2010 financial statements, the additional $2.2 million loss on receivables as:

A. An extraordinary item.

B. A prior period adjustment.

C. A retroactive adjustment.

D. A current year's expense.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9448506

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