Carrington Company Uses the Allowance Method for Recording Bad Debts

question 4

Multiple Choice

Carrington Company uses the allowance method for recording bad debts.On February 1,Carrington wrote off a $3,500 customer account balance when it became clear that the particular customer would never pay.On May 29,Carrington unexpectedly received a check for $3,500 from the customer.On May 29,Carrington will:

• A)Debit Cash and credit Bad Debt Expense for $3,500;debit Accounts Receivable and credit Allowance for Doubtful Accounts for $3,500.
• B)Debit Allowance for Doubtful Accounts and credit Accounts Receivable for $3,500;debit Cash and credit Bad Debt Expense for $3,500.
• C)Debit Accounts Receivable and credit Allowance for Doubtful Accounts for $3,500;debit Cash and credit Accounts Receivable for $3,500.
• D)Debit Allowance for Doubtful Accounts and credit Bad Debt Expense for $3,500;debit Cash and credit Accounts Receivable for $3,500.

Understand the basic structures and terms related to embryonic development.

Identify genetic and environmental influences on intelligence.

Recognize the role of genetics in psychological disorders.

Describe methods and technologies used for monitoring fetal development.

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Definitions:

Angel Investor

A wealthy individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.

Life Cycle

The series of stages through which something (such as a product, organization, or project) passes during its lifetime, from inception to termination.

Entrepreneurial Organisations

Companies characterized by innovative practices, proactive engagement with marketplace opportunities, and a willingness to take risks for growth.

Investing Wisely

The process of allocating resources, often financial, in a manner that maximizes the potential for gain while minimizing risk.