When an Account Is Written Off Using the Allowance Method

question 39

Multiple Choice

When an account is written off using the allowance method for uncollectible accounts, the

• A)carrying amount of total accounts receivable increases.
• B)net accounts receivable decreases.
• C)allowance account increases.
• D)net accounts receivable stay the same.

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Definitions:

Tape Recorder

An electronic device used for recording sound on magnetic tape and subsequently playing back the recorded audio.

Tapes

Are thin strips of material, traditionally magnetic, used for recording sound, images, or data, though often supplanted by digital media.

Demand Functions

An equation that illustates the relationship between the price of a product and the quantity demanded by consumers.

Income Offer Curve

A graphical representation showing how changes in income affect the quantities of goods consumed, holding prices constant.