Adams CoUses the Allowance Method of Determining Bad Debt Expense

question 99

Multiple Choice

Adams Co.uses the allowance method of determining bad debt expense.It collects $250 from a customer that Adams had previously written-off.As a result of collecting this $250,its:

• A)total assets increases by $250.
• B)net income increases by $250.
• C)total assets remains the same.
• D)stockholders' equity increases by $250.

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Definitions:

Behaviors

The way a person or group behaves or responds when faced with outside or inside forces.

Socialization

The process by which individuals learn and internalize the values, beliefs, and norms of their society, becoming functioning members of that society.

Human Personality

The combination of emotional, attitudinal, and behavioral response patterns of an individual, distinguishing one person from another.

Life Course

The sequence of significant events, experiences, and transitions in an individual's life from birth to death.