Effect of the reinstatement of accounts receivable account


Question: Which of the following statements is a correct representation of the effect of the reinstatement of an accounts receivable account previously written off? a. Days' sales in receivables are not affected by the reinstatement of the account. b. Days' sales in receivables increase by the reinstatement of the account. c. Return on sales is not affected by the reinstatement of the account. d. Return on sales decreases by the reinstatement of the account.

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Accounting Basics: Effect of the reinstatement of accounts receivable account
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