When using the allowance method, the receipt of a payment on receivables that have been written-off requires an entry to reverse the write-off to the Allowance for Bad Debts account and an entry to record the receipt of cash

If the market interest rates increase during the life of a bond, the issuer will ______ on this bond.

a. record a loss b. not change the amount of interest paid c. record a gain d. increase the amount of interest paid

If the Fair Value Adjustment account for trading investments has a debit balance, ________

A) it is subtracted from the Fixed Asset account to determine carrying value B) it is subtracted from the Short-term Investment-Trading account to determine carrying value C) it is added to the Short-term Investment-Trading account to determine carrying value D) it is added to the Fixed Asset account to determine carrying value