To Record Receipt of Money After an Account Has Been

question 76

Multiple Choice

To record receipt of money after an account has been written off using the direct method,you would need to:

• A)record the receipt of cash.
• B)reopen the customer's account receivable.
• C)credit Bad Debts Recovered.
• D)All of the above.

---

Definitions:

Cost Allocation

The process of identifying, aggregating, and assigning costs to cost objects, such as products, services, or departments.

Residual Value

Residual value is the estimated amount that an asset will be worth at the end of its useful life, reflecting its expected salvage value.

Double Diminishing-Balance

An accelerated method of depreciation that doubles the depreciation rate of the diminishing balance method, expensing a larger portion of the asset's cost near the beginning of its life.

Residual Value

The anticipated value of an asset at the conclusion of its lifespan.