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On June 10. a $5,000 account receivable from a customer was written off using the allowance 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 and retained camnings would decrease Accounts receivable and the towance for bad debts would increase Accounts receivable and the allowance for bad debts would decrease Accounts receivable and retained earnings would increaso, Which of the following statements is true regarding the percentage of credit sales approach under the allowance method for estimating uncollectible accounts at the end of the accounting period? It violates the matching concept It is a balance sheet approach It estimates the desired ending balance in the allowance for bad debts It is an income statement approach