In 2016, Able Co

question 78

Multiple Choice

In 2016, Able Co. wrote off a $2,000 accounts receivable from Kane Limited. In late 2017, Kane paid the full amount of the receivable. After the repayment has been recorded, the balance in

• A) accounts receivable will be $2,000 higher.
• B) bad debt expense will be $2,000 lower.
• C) accounts receivable will be the same as before the collection was recorded.
• D) allowance for doubtful accounts will be $2,000 lower.

---

Definitions:

Health Maintenance Organization

A type of health insurance plan that provides healthcare services through a network of providers for a monthly or annual fee.

State Regulations

Refers to laws and rules enacted by a state government that govern practices within that state, affecting areas such as business operations, employment, and public health.

Civil Rights Act

Landmark U.S. legislation, particularly the Civil Rights Act of 1964, that outlawed discrimination based on race, color, religion, sex, or national origin.

Legal Costs

Expenses associated with the legal process, including lawyer fees, court fees, and any settlements or judgments.