When a Company Uses the Allowance Method of Accounting for Uncollectible

question 145

Multiple Choice

When a company uses the allowance method of accounting for uncollectible receivables, the entry to reinstate a previously written off account would include a

• A) credit to Bad Debt Expense
• B) debit to Bad Debt Expense
• C) debit to Allowance for Doubtful Accounts
• D) credit to Allowance for Doubtful Accounts

---

Definitions:

Phallic

Relating to or resembling the penis, often used in the context of Freudian psychoanalysis to describe a stage of human development.

Genital

Pertaining to the external and internal organs of reproduction in both males and females.

Defense Mechanism

Psychological strategies brought into play by individuals, groups, or even nations to cope with reality and to maintain self-image.

Reaction Formation

A defense mechanism where an individual unconsciously replaces unacceptable thoughts or feelings with their opposites.