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:

Financial Statement

Formal records that outline the financial activities and condition of a business, individual, or entity.

Iodine Contrast

A type of contrast agent used in medical imaging that contains iodine, which helps enhance the visibility of internal structures.

Allergic

Having an immune response or sensitivity to a particular substance, resulting in symptoms like itching, sneezing, or rash.

Shellfish

Aquatic shelled animals, such as shrimp, crabs, and oysters, often used for food, some of which can cause allergic reactions in certain individuals.