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:

Employee Empowerment

A management philosophy that emphasizes giving employees the authority, tools, and information to make decisions and take responsibility for their actions in the workplace.

Non-Management Employees

Workers within an organization who do not have supervisory or managerial responsibilities, often focusing on specific operational tasks.

Pay Increases

Adjustments made to an employee's salary to reward performance, match market rates, or adjust for cost of living.