Your Company Wrote Off $350 in Accounts Receivable Two Months

question 71

Multiple Choice

Your company wrote off $350 in accounts receivable two months ago when a customer went bankrupt. That customer reorganizes and now pays the $350. Your company should:

• A) debit Bad Debt Expense and credit Cash.
• B) debit Accounts Receivable and credit Bad Debt Expense and then debit Allowance for Doubtful Accounts and credit Cash.
• C) debit Cash and credit Bad Debt Expense.
• D) debit Accounts Receivable and credit Allowance for Doubtful Accounts and then debit Cash and credit

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Definitions:

Normal Curve

A symmetrical, bell-shaped curve representing the distribution of a set of data where most occurrences fall near the average, and fewer are found the farther one moves away from the mean.

Standard Deviation

Standard deviation is a statistical measure that quantifies the amount of variation or dispersion of a set of data values from the mean (average) of the data set.

Scatterplot

A graphical representation using dots to show the relationship between two variables.

Self-Esteem

An individual's overall subjective emotional evaluation of their worth or personal value.