When a Company Uses the Allowance Method of Accounting for Uncollectible

question 145

Multiple Choice

When a company uses the allowance method of accounting for uncollectible receivables, the entry to reinstate a previously written off account would include a

• A) credit to Bad Debt Expense
• B) debit to Bad Debt Expense
• C) debit to Allowance for Doubtful Accounts
• D) credit to Allowance for Doubtful Accounts

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Definitions:

Sympathetic Nervous System

A part of the autonomic nervous system that activates the body's fight-or-flight response.

Adrenal Medulla

The inner part of the adrenal glands that secretes adrenaline and noradrenaline, hormones involved in the body's stress response.

Catecholamines

A group of neurotransmitters, including dopamine, norepinephrine, and epinephrine, that are involved in the body's response to stress.

Fight-Or-Flight

A physiological response to perceived threatening situations, preparing the body to either confront or flee from the threat.