The Collection of an Account That Had Been Previously Written

question 64

Multiple Choice

The collection of an account that had been previously written off under the allowance method for uncollectible accounts

• A) will increase net income in the period it is collected.
• B) will decrease net income in the period it is collected.
• C) requires a correcting entry for the period in which the account was written off.
• D) does not affect net income in the period it is collected.

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Definitions:

Computer Industry

A sector of the economy that encompasses businesses involved in manufacturing, developing, and selling computer hardware, software, and services.

Stock Value

The worth of a stock, influenced by the company's performance, market conditions, and investor sentiment.

Current Shareholders

Individuals or institutions that own shares of stock in a corporation at the present time.

Compensation

The total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work performed, including wages, salaries, bonuses, and benefits.