The Entry Required to Recognize the Uncollectible Accounts Expense for 2012

question 72

Multiple Choice

The entry required to recognize the uncollectible accounts expense for 2012 will

• A) increase total assets and retained earnings.
• B) decrease total assets and retained earnings.
• C) decrease total assets and increase net income.
• D) increase total assets and decrease net income.

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Definitions:

Assignee

An individual or entity to whom rights or interests are transferred by another, typically for the purpose of debt collection or in the context of contracts.

Mother Dairy

A leading dairy brand in India, known for its milk products and edible goods.

Holder in Due Course

A legal term referring to a person who has acquired a negotiable instrument in good faith, for value, and without notice of any defect or claim against it.

Bureau of Consumer Financial Protection

A U.S. government agency that ensures consumers are treated fairly by banks, lenders, and other financial companies.