Which Statement Is Not True in Relation to Bad Debts

question 8

Multiple Choice

Which statement is not true in relation to bad debts recovered?

• A) The accounts receivable should be re-established to maintain a complete history of the customer's activity and restore their credit rating.
• B) The recovery is recorded by effectively reversing the entry originally made to write off the receivable.
• C) The entry to reinstate the accounts receivable is DR Accounts receivable and CR Bad debts recovered.
• D) The entry made following reinstatement of the account receivable to record the recovery is DR Bad debts recovered and CR Accounts receivable.

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Definitions:

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for action and stress, triggering the "fight or flight" response.

Digestion

The process by which the body breaks down food into smaller components, ultimately to be absorbed into the bloodstream for nutrition.

Pupil Dilation

The expansion of the pupil, influenced by light exposure, emotional states, and arousal levels.

Nervous System

The complex network of nerves and cells that transmits signals between different parts of the body.