A Company Writes Off a Specific Account as Uncollectible,but Later

question 50

Multiple Choice

A company writes off a specific account as uncollectible,but later the customer pays.The journal entry to record the reinstatement under the allowance method includes a(n) :

• A)increase to Cash.
• B)decrease to Sales.
• C)decrease to Allowance for Doubtful Accounts.
• D)decrease to Bad Debts Expense.

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Definitions:

Accuracy

The degree to which the result of a measurement, calculation, or specification conforms to the correct value or a standard.

False Memory

A mental event where someone mistakenly believes they remember an event that never occurred or recalls the event inaccurately.

Semantic Memory

is a type of long-term memory involving the capacity to recall words, concepts, or facts that are not drawn from personal experience.