Indicate How Each Event Affects the Financial Statements

question 156

Essay

Indicate how each event affects the financial statements. Use the following letters to record your answer in the box shown below. If an event increases one account and decreases another account equally within the same element, record I/D. If an event has no impact on the element, record NA. You do not need to enter dollar amounts.
Increase = I Decrease = D Not Affected = NA
Furs Company uses the allowance method. On June 20, Furs wrote off an uncollectible account in the amount of $2,000. On September 1, the company collected the receivable that it had previously written off. How would reinstating the receivable (not the collection)affect the financial statements?

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Definitions:

1787

The year notable for the drafting of the United States Constitution at the Philadelphia Convention.

Ordinance of 1784

A law drafted by Thomas Jefferson that regulated land ownership and defined the terms by which western land would be marketed and settled; it established stages of self-government for the West. First Congress would govern a territory; then the territory would be admitted to the Union as a full state.

Slavery

A system where individuals are owned by others, deprived of personal freedom and compelled to work without wages.

Urban

Pertaining to cities or towns; characterized by higher population density and vast human features in contrast to rural areas.