Once an Account Receivable Is Written Off, Can a Business

question 72

Multiple Choice

Once an Account Receivable is written off, can a business ever collect that money?

• A)No, GAAP does not allow a company to collect any amounts from a customer who has had an account written off.
• B)Only when using the direct write-off method can a company collect from a customer who has had an account written off.
• C)Only when using the allowance method can a company collect from a customer who has had an account written off.
• D)Both the allowance and direct write-off methods permit a company to collect from a customer who has had an account written off.

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