Question: Under the allowance method, when a receivable that had been previously written off is collected: a. Net income is increased. b. Net assets are increased.

  1. Under the allowance method, when a receivable that had been previously written off is collected:

  3. a. Net income is increased.
  4. b. Net assets are increased.
  5. c. Neither net income nor net assets are affected.
  6. d. Both net assets and net income are increased.

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