Under the direct write-off method, when an account receivable is written off in one accounting period and is collected in the following accounting period, which of the following would be included in the journal entry?
A) debit Accounts Receivable
B) credit Bad Debt Expense
C) credit Cash
D) credit Accounts Receivable

Question

Quizplus · Accepted Answer

When an account previously written off is collected, the entry to reinstate the receivable involves debiting Accounts Receivable and crediting Bad Debt Expense. Then, when cash is collected, debit Cash and credit Accounts Receivable.

Under the Direct Write-Off Method, When an Account Receivable Is