SE8-2. Reinstating Written-Off Accounts The Stonegate Company uses the allowance method of record. ing credit losses and wrote off a customer's account in the amount of $800. Later, the customer paid the account. The company reinstated the account by means of a journal entry and then recorded the collection. What is the result of these procedures? Increases total assets by $800 b. Decreases total assets by $800 Decreases total assets by $1,600 d. Has no effect on total assets

3-2. Reinstating Written-Off Accounts The Stonegate Company uses the allowance method of recording credit losses and wrote off a customer's account in the amount of $800. Later, the customer paid the account. The company reinstated the account by means of a journal entry and then recorded the collection. What is the result of these procedures? a. Increases total assets by $800 b. Decreases total assets by $800 c. Decreases total assets by $1,600 d. Has no effect on total assets