When an Account Receivable That Has Previously Been Written Off

question 102

Multiple Choice

When an account receivable that has previously been written off is later paid,under the allowance method the correct accounting is to

• A)Dr.A/R Cr.Allowance for Doubtful Accounts
• Dr.Cash
• Cr.A/R
• B)Dr.A/R Cr.Cash
• Dr.A/R
• Cr.Allowance for Doubtful Accounts
• C)Dr.Cash Cr.A/R
• D)Dr.A/R Cr.Allowance for Doubtful Accounts

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Definitions:

GDP

Gross Domestic Product, the total value of all goods and services produced within a country over a specific period.

Service Sectors

The segment of the economy that provides intangible goods and services to consumers, including retail, education, health care, and financial services.

Poor Countries

Nations with low levels of economic productivity, low per capita income, and generally low standards of living.

Insufficient Capital Formation

A situation where the economy or an entity fails to invest adequately in capital goods, which can limit economic growth and productivity.