Multiple Choice
Mission Aces Inc partially recovered a trade receivable of $400 from a customer. The total trade receivable of $4,000 had previously been written off as a bad debt. After considering the journal entry or entries that the company will make to record the recovery, what will be the net effect on accounts receivable?
A) Accounts receivable will increase by $400
B) Accounts receivable will decrease by $3,600
C) The effect on accounts receivable is zero
D) Accounts receivable will decrease by $400
Correct Answer:
Verified
Correct Answer:
Verified
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