Mandy Smith's Account Was Written Off Last Year

question 10

Multiple Choice

Mandy Smith's account was written off last year. She owed City Company $5,000. Using the allowance method, the journal entry to receive the cash after her account has been reinstated involves:

• A)a debit to cash and a credit to Smith's account receivable.
• B)a debit to allowance for doubtful accounts and a credit to Smith's account receivable.
• C)a debit to cash and a credit to bad-debt expense.
• D)a debit to Smith's account receivable and a credit to allowance for doubtful accounts.

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Definitions:

Confounding Variable

A variable outside of the researcher's control that can affect the results of an experiment, making it difficult to establish a clear cause-and-effect relationship.

Independent Variable

In research, the variable that is manipulated or varied by the researcher to observe its effect on the dependent variable.

Meta-analysis

A statistical analysis that combines the results of multiple scientific studies to arrive at a conclusion that has greater statistical power.

Effect Size

A quantitative measure of the strength of a phenomenon, often used in statistical analysis to determine the significance or impact of research findings.