2829

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? Accounts receivable would increase and retained earnings would decrease Accounts receivable and retained earnings would decrease Accounts receivable and retained earrings would increase Accounts receivable would decrease, and retained camins would increase Which of the following statements is true regarding the direct write-off method? No contra asset is used to estimate the net realizable value of accounts recewable It recognizes bad debt expenses an estimate at the end of the accounting period It han accepted method under GAAP for recording bad debt expene. It violates the cost principle