A business paid $7,000 to a creditor in payment of an amount owed. The effect of the transaction on the accounting equation was to a. decrease an asset; decrease a liability b. increase an asset; decrease another asset c. increase an asset; increase a liability d. increase an asset; increase stockholders' equity

Gideon company uses the allowance method of accounting for uncollectible accounts. on may 3, the gideon company wrote off the $2,000 uncollectible account of its customer, a. hopkins. on july 10, gideon received a check for the full amount of $2,000 from hopkins. on july 10, the entry or entries gideon makes to record the recovery of the bad debt is