1.A bank statement shows a balance of $8,445 at June 30. The bank reconciliation is prepared and includes outstanding checks of $2,790, deposits in transit of $1,350, and a bank service charge of $30. Among the paid checks returned by the bank was check no. 900 in the amount of $600, which the company had erroneously recorded in the accounting records as $60. The "adjusted cash balance" at June 30 is:

A.$6,975.B.$6,465.C.$7,005.D.$7,575.

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. C.Net income and net assets are not affected. D.Net assets and net income are both increased.