Answer:
creditor
Explanation:
Blue Wholesale Shirt Co. and Pink Retail Shoppe are business partners. The products produced by the Blue Wholesale Shirt Co. is bought by Pink Retail Shoppe. And Pink Retail Shoppe pays Blue Wholesale Shirt Co. in terms of money for the products purchased.
It is mentioned that Pink Retail Shoppe purchased shirts from Blue Wholesale Shirt Co. and the owner of the Pink Retail Shoppe promises to pay Blue Wholesale Shirt Co. at a later date in the future.
This makes the Blue Wholesale Shirt Company the creditor because Pink Retail Shoppe owes money to Blue for the purchased of the product. A creditor in one whom money is to be owed.
Thus the answer is creditor.
Answer:
B- affects the net realizable value of accounts receivable
Explanation:
The mechanics of the allowance method are that the initial entry is a debit to bad debt expense and a credit to the allowance for doubtful accounts (which increases the reserve). The allowance is a contra account, which means that it is paired with and offsets the accounts receivable account. When a specific bad debt is identified, the allowance for doubtful accounts is debited (which reduces the reserve) and the accounts receivable account is credited (which reduces the receivable asset). If a customer subsequently pays an invoice that has already been written off, then the process is reversed to increase both the allowance and the accounts receivable account, after which the cash account is debited to increase the cash balance and the accounts receivable account is credited to reduce the receivable asset.
Prepare for the istg negotiations for your release
The answer to this would be A, multidirectional
