Houff Company Uses the Allowance Method to Account for Uncollectible

question 34

Multiple Choice

Houff Company uses the allowance method to account for uncollectible accounts.An account that had been previously written-off as uncollectible was recovered.How would the recovery affect the company's accounting equation?

• A)Increase assets and increase equity.
• B)Increase assets and decrease liabilities.
• C)Reduce liabilities and increase equity.
• D)Have no effect on assets,liabilities or equity.

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Definitions:

Helper T Cells

A type of T cell that plays a crucial role in the immune system by assisting other cells in recognizing and fighting off infections.

Antibody-mediated Response

The antibody-mediated response is an immune response where B cells produce specific antibodies targeting and neutralizing pathogens, a key aspect of the body's adaptive immunity.

The Antigen

A substance that, when introduced into the body, triggers an immune response by prompting the production of antibodies.

B-cell

A type of white blood cell crucial to the immune system, responsible for producing antibodies.