When Using the Allowance Method,after a Company Has Previously Written

question 191

Multiple Choice

When using the allowance method,after a company has previously written off an account,________.

• A) the company continues to send monthly statements to the customers whose accounts have been written off
• B) the company cannot collect from these customers because their accounts have been written off
• C) when a customer pays on an account that has been written off, the company needs to reverse the write-off to the Allowance for Bad Debts account and then record the receipt of cash
• D) the company does not need to reestablish the receivable account

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Definitions:

Mitochondrial Matrix

The innermost compartment of the mitochondrion, enclosed by the inner membrane, containing enzymes, DNA, and ribosomes for energy production.

Pyruvate

A key intermediate compound in cellular metabolism formed from the glycolysis of glucose.

Alcoholic Fermentation

A biochemical process by which sugars are converted into ethanol and carbon dioxide by the action of yeast or bacteria.

Lactate Fermentation

An anaerobic metabolic process by which glucose or other six-carbon sugars are converted into cellular energy and the metabolite lactate.