A Customer Pays on a Specific Account That the Company

question 2

Multiple Choice

A customer pays on a specific account that the company had previously written off as uncollectible. The journal entry to record the reinstatement under the allowance method includes a(n) :

• A) decrease to Cash.
• B) decrease to Sales.
• C) increase to Allowance for Doubtful Accounts.
• D) decrease to Bad Debts Expense.

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Definitions:

Nanotechnology

The science and technology of creating and utilizing materials, devices, and systems by manipulating matter at the nanometer scale.

Economic Growth

An increase in the production of goods and services in an economy over a period, often measured as the percent rate increase in real gross domestic product (GDP).

Foreign Exchange Market

A global decentralized or over-the-counter market for the trading of currencies, enabling currency conversion for international trade and investment.

Depreciation

The reduction in the value of an asset over time, often due to wear and tear, obsolescence, or market conditions, considered in financial accounting and tax calculations.