Question: When the allowance method of recognizing doubtful accounts is used, which of the following statements is true regarding the impact a collection of an account

When the allowance method of recognizing doubtful accounts is used, which of the following statements is true regarding the impact a collection of an account previously written off would have on accounts receivable and allowance for doubtful accounts balances?

a. Accounts receivable would not change and allowance for doubtful accounts would increase.

b. Accounts receivable would not change and allowance for doubtful accounts would not change.

c. Accounts receivable would increase and allowance for doubtful accounts would increase.

d. Accounts receivable would not change and allowance for doubtful accounts would decrease.

e. Accounts receivable would increase and allowance for doubtful accounts would decrease.

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