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When Making a Collection,no Entry Was Recorded to Reinstate an Account

Question 20

Multiple Choice

When making a collection,no entry was recorded to reinstate an account previously written off.The allowance method is being used.This error would cause:


A) total assets to be overstated.
B) total liabilities to be understated.
C) net income to be understated.
D) None of these is correct.

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