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:

U.S. Income Tax Code

The body of laws and regulations that govern how individuals, businesses, and other entities are taxed by the federal government of the United States.

Pension Fund Contributions

Payments made into a pension fund by employers, employees, or both, intended to finance future benefit payments to retirees.

Pension Plan Sponsor

The entity, typically a company or employer, that sets up and maintains a pension plan for the benefit of its employees.

Pension Funding Ratios

Measures the financial health of a pension plan by comparing the plan's assets to its liabilities.