When an Account Has Been Written Off Under the Direct

question 33

Multiple Choice

When an account has been written off under the direct write-off method in one period and is collected in a subsequent period, the credit to reinstate the account is made to

• A) Accounts Receivable.
• B) Bad Debt Expense.
• C) Bad Debt Income.
• D) Uncollectible Accounts Recovered.

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Definitions:

Patient's Signature

A written or digital form of consent where a patient agrees to proposed medical treatments or procedures.

Health-Related Service

Services or interventions provided to individuals to maintain, improve, or manage their health status, often including medical care, counseling, or support services.

Explanation of Benefits (EOB)

A document provided by insurance companies that explains the costs covered for medical services or products received.

Claim Number

A unique identifier assigned to an insurance claim, used for tracking and managing the claim process.