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When a Firm Uses the Allowance Method to Provide for Losses

Question 65

Multiple Choice

When a firm uses the allowance method to provide for losses for uncollectible accounts,the collection of an account previously written off as uncollectible requires an entry to


A) reinstate the account receivable.
B) increase the balance of the Sales account.
C) reduce the balance of Uncollectible Accounts Expense.
D) decrease the balance of the Allowance for Doubtful Accounts.

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