For Each of the Following Transactions,indicate How Each Will Affect

question 30

Essay

For each of the following transactions,indicate how each will affect the elements of the accounting equation by answering increase,decrease,or no effect.
a.The company uses the direct write-off method and writes off specific receivables that have been identified as uncollectible.
b.The company uses the allowance method and records the bad debts expense for the year.
c.The company receives a 1-year promissory note from a customer in payment of his account because he needs additional time to pay.
d.The company receives a payment from a customer on his account which had been previously written off as worthless.
e.The company accrues interest earned on the note received in (c).

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Definitions:

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An infectious bacterial disease that causes uncontrollable, violent coughing which can make it hard to breathe; also known as pertussis.

Atelectasis

A condition in which the lung or a part of the lung collapses, preventing respiratory exchange of carbon dioxide and oxygen.

Lungs

The pair of respiratory organs in the chest where blood is oxygenated and carbon dioxide is removed.

Dilation

The process of expanding or widening an opening or structure in the body, often referring to blood vessels, the pupil of the eye, or the cervix during childbirth.