During 2016, a company wrote off $7,500 in uncollectible accounts receivable. At the end of the year, bad debt expense was estimated using a percent of gross sales. In 2017, the company collected $1,500 from an account that was written off in 2016. Recording this collection would include
A) a debit to Retained Earnings.
B) a credit to Allowance for Doubtful Accounts.
C) a decrease to gross receivables.
D) an increase to net receivables.
B
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