Under the Allowance Method for Uncollectible Accounts

question 98

Multiple Choice

Under the allowance method for uncollectible accounts,

• A)the recovery of an account receivable previously written off results in a credit to the Bad Debt Expense account.
• B)Bad Debts Expense is debited when an account is deemed uncollectible and must be written off.
• C)the carrying value of receivables is the same both before and after an account has been written off.
• D)the carrying amount of receivables is the same both before and after an account that had previously been written off is recovered.