When Using the Allowance Method,the Receipt of a Payment on Receivables

question 67

True/False

When using the allowance method,the receipt of a payment on receivables that have been written-off requires an entry to reverse the write-off to the Allowance for Bad Debts account and an entry to record the receipt of cash.

---

Definitions:

Air-fluidized Bed

A therapeutic bed that uses warm air under pressure to mimic the properties of fluid, reducing pressure on the skin and improving circulation for bedridden patients.

Pressure Ulcers

Injury to skin and underlying tissue resulting from prolonged pressure on the skin, commonly occurring in bedridden or immobile patients.

Low-air-loss Bed

A type of medical bed equipped with air cushions designed to minimize pressure on the skin, reducing the risk of pressure sores in bedridden patients.

Frequent Repositioning

A care practice involving the regular movement of a patient to different positions to prevent pressure ulcers and improve comfort.