Which of the Following Methods Requires Two Entries to Record

question 167

Multiple Choice

Which of the following methods requires two entries to record the recovery of accounts receivable previously written off?

• A) direct write-off
• B) allowance
• C) Two entries are never required.
• D) Both direct write-off and allowance.

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Definitions:

Money Supply

The full measure of monetary assets within an economy, involving cash, coins, and balances in checking and savings accounts, at a specified moment.

Expansion

The process of a business or economy growing and increasing its production and activities.

Records

Documents, files, or electronic data that provide evidence of activities, transactions, or decisions, or can refer to vinyl discs used for playing music.

Business Cycle

The fluctuation in economic activity that an economy experiences over a period, characterized by periods of expansion and contraction.