Which Statement Is Not True in Relation to Bad Debts

question 63

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 entry to reinstate the accounts receivable is debit accounts receivable and credit bad debts recovered.
• C) The entry made following reinstatement of the account receivable to record the recovery is debit bad debts recovered and credit accounts receivable.
• D) The recovery is recorded by effectively reversing the entry originally made to write off the receivable.

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Definitions:

Zone of Indifference

A conceptual range within which individuals are indifferent to authority's decisions or directives, either accepting or obeying them without resistance.

Perceived

Understood or interpreted in a certain way by an individual, based on their personal judgment, feelings, or opinions.

Legitimate

Something that is authorized, legal, and recognized as valid or rightful, based on established rules or standards.

Expert Power

The power that exists when an agent has specialized knowledge or skills that the target needs.