Which of the Following Double Entries Will Result in Decreases

question 9

Multiple Choice

Which of the following double entries will result in decreases in assets?
Please select all that apply.

• A) Debit sales, Credit trade receivables (double entry to record sales returns made by customers).
• B) Debit allowance for receivables, credit allowance for receivables expense (double entry to record a reduction in the allowance for receivables).
• C) Debit annual depreciation charge, credit accumulated depreciation (double entry to record the annual charge for depreciation on non-current assets).
• D) Debit irrecoverable debts, credit trade receivables (double entry to record trade receivables that cannot or will not pay what is owed).

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Definitions:

Strategic Alliance

An official contract among two or more entities to follow a shared set of goals, while still maintaining their separate legal statuses.

Merger

The joining together of two organizations.

Organizations

Structured groups of people who come together to achieve common goals through a division of labor and a hierarchy of authority.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business activity.