Millie's Draperies Uses the Allowance Method of Recording Bad Debts

question 40

Multiple Choice

Millie's Draperies uses the allowance method of recording bad debts.On June 13,the $200 account balance of Jane Murphy was charged off.However,on August 5,Murphy paid $80 of the amount previously written off.The entry to record the payment from Murphy would include:

• A) debit Accounts Receivable $80;credit Allowance for Doubtful Accounts $80
• B) debit Accounts Receivable $200;credit Allowance for Doubtful Accounts $200
• C) debit Allowance for Doubtful Accounts $80;credit Cash $80
• D) debit Cash $80;credit Uncollectible Accounts Expense $80

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Definitions:

Political Science

An academic discipline that studies governments, public policies, political processes, political behavior, and ideas about governance.

Moderates

Individuals or positions in politics or social issues that are not extreme and often found in the middle of the spectrum.

Male

Referring to the sex of an organism or individual that produces sperm or male gametes.

Political Science

The examination of political structures, the functioning of governments, and the conduct related to politics.