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The stockholders' equity section of the corporate balance sheet is separated into paid-in capital and retained earnings.

Select one:

True

False

Under the direct write-off method, when a previously written-off account is recovered in the same accounting period, which of the following entries is required to reinstate the account?

a.

debit Accounts Receivable and credit Bad Debt Expense

b.

debit Cash and credit Bad Debt Expense

c.

debit Accounts Receivable and credit Cash

d.

debit Cash and credit Accounts Receivable