Givens, Inc.repossessed an item it sold in 2010 with a gross profit of 40%.The fair value of the repossessed item was $140.The remaining receivable amounted to $400.What account had the smallest amount debited to it?
A)Allowance for Doubtful Installment Accounts Receivable
B)Accounts Receivable
C)Repossessed Inventory
D)Deferred Gross Profit

Question

Quizplus · Accepted Answer

The Allowance for Doubtful Installment Accounts Receivable would have the smallest amount debited, as it would only be adjusted for any estimated uncollectible portion of the receivable, which is typically smaller than the other amounts involved.