Newton Company Uses the Allowance Method of Accounting for Uncollectible

question 166

Multiple Choice

Newton Company uses the allowance method of accounting for uncollectible accounts.On May 3,the Newton Company wrote off the $3,000 uncollectible account of its customer,P.Best.On July 10,Newton received a check for the full amount of $3,000 from Best.On July 10,the entry or entries Newton makes to record the recovery of the bad debt is:

• A)
• \(\begin{array}{|l|r|r|}
• \hline\text { Accounts Receivable - P. Best } & 3,000 & \\
• \hline \text { Allowance for Doubtful Accounts } & & 3,000 \\
• \hline \text { Cash } & 3,000 & \\
• \hline \text { Accounts Receivable - P. Best } & & 3,000\\
• \hline
• \end{array}\)
• B)
• \(\begin{array}{|l|r|r|}
• \hline \text { Cash } & 3,000 & \\
• \hline \text { Bad Debts Expense } & & 3,000 \\
• \hline
• \end{array}\)
• C)
• \(\begin{array}{|l|r|r|}
• \hline\text { Accounts Receivable - P. Best } & 3,000 & \\
• \hline \text { Bad Debts Expense } & & 3,000 \\
• \hline \text { Cash } & 3,000 & \\
• \hline \text { Accounts Receivable - P. Best } & & 3,000\\
• \hline
• \end{array}\)
• D)
• \[\begin{array} { | c | c | c | }
• \hline \text { Allowance for Doubtful Accounts } & 3,000 & \\
• \hline \text { Accounts Receivable - P. Best } & & \mathbf { 3 , 0 0 0 } \\
• \hline \text { Accounts Receivable-P. Best } & 3,000 & \\
• \hline \text { Cash } & & 3,000 \\
• \hline
• \end{array}\]
• E)
• \(\begin{array}{|l|r|r|}
• \hline \text { Cash } & 3,000 & \\
• \hline \text { Accounts Receivable - P. Best } & & 3,000 \\
• \hline
• \end{array}\)

Identify the purpose and impact of placebo effects in research settings.

Acknowledge the potential of experimenter expectancy effects (e.g., experimenter bias) to influence research outcomes.

Understand the importance of internal and external validity in experimental research.

Comprehend the roles and manipulations of independent and dependent variables in experiments.

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Definitions:

Business Norms

Accepted practices, behaviors, and standards within the business community, often varying by industry or region.

Technological Environment

The aspect of the external business environment that relates to the development, availability, and application of technology affecting businesses.

Extensive Customization

Extensive customization refers to the process of tailoring products, services, or experiences to meet the specific needs or preferences of individual customers, often involving significant modifications.

Global Trade

Refers to the exchange of goods, services, and capital across international borders, driven by the aim of accessing new markets and leveraging global efficiencies.