Under the Direct Write-Off Method, to Record the Receipt of Cash

question 52

Multiple Choice

Under the direct write-off method, to record the receipt of cash after an account has previously been written off, you would first:

• A)debit Cash and credit the customer's account.
• B)reinstate the customer's account.
• C)debit Allowance for Doubtful Accounts.
• D)debit Bad Debt Expense.

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Definitions:

Fair Credit Reporting Act

A U.S. federal law that regulates the collection, dissemination, and use of consumer credit information.

Credit Bureaus

Organizations that collect, maintain, and provide consumer credit information for the purpose of evaluating creditworthiness.

Complete Information

A scenario or state where all participants or parties have access to all necessary information, usually referenced in economics and game theory.

Telephone Consumer Protection Act

U.S. legislation regulating telemarketing calls, auto-dialed calls, prerecorded calls, text messages, and unsolicited faxes.