A Company That Uses the Allowance Method Writes Off a Specific

question 70

Multiple Choice

A company that uses the allowance method writes off a specific account as uncollectible,but then the customer pays.The entries made upon receiving payment will

• A)decrease Cash.
• B)decrease Allowance for Uncollectible Accounts.
• C)increase Allowance for Uncollectible Accounts.
• D)decrease Uncollectible Accounts Expense.

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Definitions:

Items Matching

A fundamental accounting principle that mandates the expenses related to revenue are reported in the same period as the revenue itself.

Classified Balance Sheet

A financial statement that groups a company's assets, liabilities, and equity into categorized sections for clearer analysis.

Permanent Accounts

Accounts that carry their balances over into the next accounting period, typically representing the asset, liability, and equity accounts.

Stockholders' Equity

The remaining value of a company's assets after all its debts have been paid, commonly known as shareholders' equity.