Use the Following to Answer Questions

question 59

Short Answer

Use the following to answer questions
On December 31,2015,the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible.Loudoun uses the allowance method of accounting for uncollectible accounts.In February 2016,one of Loudoun's customers failed to pay his $1,050 account and the account was written off.On April 4,2016,this customer paid Loudoun the $1,050.
-Which of the following answers correctly states the effect of Loudoun's recording the reestablishment of the receivable on April 4,2016?

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Definitions:

Properly Identified

Accurately recognized or distinguished from others based on specific characteristics or criteria.

Tender

To offer to turn goods over to a buyer.

Warehouse

A building or structure in which any goods, but particularly wares or merchandise, are stored.

C.O.D. Shipment

Cash on Delivery Shipment - A transaction in which payment for a good is made at the time of delivery rather than in advance.