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A Debtor's Account That Was Previously Written-Off Has Now Been

Question 6

Multiple Choice

A debtor's account that was previously written-off has now been collected in full. Why should the accounts receivable for the debtor be re-established?


A) To restore the credit rating of the debtor.
B) So that the debits equal the credits.
C) So that assets are not understated.
D) So that expenses are not overstated.

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