Memorex Disks sells computer disk drives with right-of-return privileges. Returns are material and reasonably predictable. Memorex should: a. Not record sales until the right to return has expired. b. Record an allowance for sales returns in the year of the sale. c. Debit sales returns in the period of the return. d. Debit sales in the period of the return. A company uses the allowance method to account for bad debts. What is the effect on each of the following accounts of the collection of an account previously written off? Collection of accounts receivable that previously have been written off results in an increase in cash and an increase in: a. Accounts receivable. B. Allowance for uncollectible accounts. Bad debts expense. D. Retained earnings