No entry was recorded to reinstate a bad debt when making a collection. The allo

User Generated

Qnja46550

Business Finance

Description

No entry was recorded to reinstate a bad debt when making a collection. The allowance method is being used. This error would cause __________.

A. total assets to be overstated

B. total liabilities to be understated

C. net income to be understated

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Explanation & Answer

C. net income to be understated


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