If an account is collected after having been previously written off
A)the Allowance account should be debited.
B)only the control account needs to be credited.
C)both income statement and statement of financial position accounts will be affected.
D)there will be both a debit and a credit to Accounts Receivable.

Question

Quizplus · Accepted Answer

When an account is collected after having been previously written off, there will be both a debit and a credit to Accounts Receivable. The receivable will be reduced and cash will be increased, resulting in a debit to Accounts Receivable and a credit to Cash. This transaction does not affect the Allowance account or the control account, and only affects balance sheet accounts, not income statement accounts.

If an Account Is Collected After Having Been Previously Written