After a Customer's Account Has Been Written Off Under the Allowance

question 148

Multiple Choice

After a customer's account has been written off under the allowance method,the customer sends the company the amount owed.Before the receipt of cash can be recorded,the company must first:

• A) debit Allowance for Uncollectible Accounts
• B) credit Bad Debt Expense
• C) debit Accounts Receivable
• D) credit Accounts Receivable

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Definitions:

Repetition

The act of doing or saying something again, often for practice, memorization, or emphasis.

Elaboration

Mnemonic strategy of making mental associations involving items to be remembered.

Organization

(1) Piaget’s term for the creation of categories or systems of knowledge. (2) Mnemonic strategy of categorizing material to be remembered.

Technique

A specific way of carrying out a particular task, often implying a skillful or efficient method.