When an Account Receivable That Has Previously Been Written Off

question 102

Multiple Choice

When an account receivable that has previously been written off is later paid,under the allowance method the correct accounting is to

• A)Dr.A/R Cr.Allowance for Doubtful Accounts
• Dr.Cash
• Cr.A/R
• B)Dr.A/R Cr.Cash
• Dr.A/R
• Cr.Allowance for Doubtful Accounts
• C)Dr.Cash Cr.A/R
• D)Dr.A/R Cr.Allowance for Doubtful Accounts

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Definitions:

Progressive

Referring to a tax system in which the tax rate increases as the taxable amount increases, leading to higher earners paying a higher percentage of their income in taxes.

Regressive

A term often used to describe a tax system where the tax rate decreases as the taxable amount increases, effectively placing a greater burden on those with lower incomes.

Benefits-Received Principle

An approach to funding public goods and services where payments are made by those who benefit from them, matching payment to benefit received.

Tax System

The organized method by which a government collects taxes from its citizens and businesses to fund public services and infrastructure.