When the Allowance Method of Recognizing Bad Debt Expense Is

question 18

Multiple Choice

When the allowance method of recognizing bad debt expense is used,the entries at the time of collection of a small account previously written off would

• A) increase net income.
• B) increase the allowance for doubtful accounts.
• C) decrease net income.
• D) decrease the allowance for doubtful accounts.

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Definitions:

Peristalsis

The involuntary constriction and relaxation of the muscles of the intestine or another canal, creating wavelike movements that push the contents forward.

Sartorius

A long narrow muscle of the thigh; the longest muscle of the body.

Duchenne's

Often referring to Duchenne muscular dystrophy, a genetic disorder characterized by progressive muscle degeneration and weakness.

Erb's

Refers to Erb's palsy, a condition caused by nerve damage around a baby's neck, which can lead to weakness or loss of movement in the arm.