On June 16, 2018, Evergreen Inc

question 200

Multiple Choice

On June 16, 2018, Evergreen Inc. wrote off the $200 receivable from customer M. Simmons. On October 14, 2018, Evergreen unexpectedly receives $200 cash from M.Simmons. How should Evergreen record the $200 payment from M. Simmons? Evergreen uses the allowance method.

• A) debit Cash and credit Bad Debts Expense
• B) debit Accounts Receivable - M. Simmons and credit Allowance for Bad Debts; debit Cash and credit Accounts Receivable - M. Simmons
• C) debit Accounts Receivable - M. Simmons and credit Bad Debts Expense; debit Cash and credit Accounts Receivable - M. Simmons
• D) debit Cash and credit Allowance for Bad Debts

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Definitions:

Enthusiasm

A feeling of energetic interest in a particular subject or activity and the eagerness to be involved in it.

Uncertainties

Situations or conditions where the outcomes are unpredictable or unknown.

High Performance Team

A high performance team refers to a group of individuals who are highly focused on their goals and achieve superior results through collaboration, commitment, and excellent interpersonal dynamics.

Timely Decisions

The action of making choices or judgments at the right moment to avoid delay and capitalize on effectiveness.