Under the Allowance Method,if a Customer Makes Payment on a Receivable

question 142

True/False

Under the allowance method,if a customer makes payment on a receivable that has already been written off,the company needs to reverse the write-off to the Allowance for Bad Debts account.

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Definitions:

Salespeople's Compensation

The payment plan designed for sales personnel, often including a combination of salary, commission, and other incentives based on performance.

Business Customer

An entity, typically a company or organization, that purchases goods or services for use in the production of other goods and services, rather than for personal use.

Missionary Salespeople

Sales representatives who promote their company's products indirectly, often by educating and building relationships with intermediaries rather than selling directly to end users.

Promotional Activities

Marketing efforts aimed at increasing awareness and sales of a product or service, often through advertising, discounts, or public relations campaigns.