On June 10, a $5.000 account receivable from a customer was written off using the direct...

 

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On June 10, a $5.000 account receivable from a customer was written off using the direct write-off method. On November 1, the account was collected from the customer. How would the reinstatement of the account (reversal of the write-off) on November 1 affect the accounting equation? O Accounts receivable would increase, and retained earnings would decrease O Accounts receivable and retained earnings would decrease. O Accounts receivable and retained eamings would increase O Accounts receivable would decrease, and retained earmings vwould increase Which of the following statements is true regarding the direct write-off method? O No contra asset is used to estimate the net realizable value of accounts receivable. O t recognizes bad debt expense as an estimate at the end of the accounting period. O Ris an accepted method under GAMP for recording bad debt expense. O t violates the cost principle On June 10, a $5.000 account receivable from a customer was written off using the direct write-off method. On November 1, the account was collected from the customer. How would the reinstatement of the account (reversal of the write-off) on November 1 affect the accounting equation? O Accounts receivable would increase, and retained earnings would decrease O Accounts receivable and retained earnings would decrease. O Accounts receivable and retained eamings would increase O Accounts receivable would decrease, and retained earmings vwould increase Which of the following statements is true regarding the direct write-off method? O No contra asset is used to estimate the net realizable value of accounts receivable. O t recognizes bad debt expense as an estimate at the end of the accounting period. O Ris an accepted method under GAMP for recording bad debt expense. O t violates the cost principle

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Accounts receivables will increase and retained earnings will ... View the full answer