The Collection of an Account That Had Been Previously Written

question 30

Multiple Choice

The collection of an account that had been previously written off under the allowance method for uncollectible accounts

• A)increases profit in the period of collection.
• B)involves a credit to Bad Debts Expense.
• C)will usually require two journal entries.
• D)is recorded by debiting Cash and crediting Bad Debts Expense.

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Definitions:

Standard Variable Overhead Rate

The predetermined rate used to allocate variable manufacturing overhead to individual units of production.

Standard Hours

The predetermined amount of time expected to complete a unit of work or job, serving as a benchmark for productivity and performance measurement.

Actual Output

The real quantity of goods or services produced by a company during a specific period.