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 statement of earnings and balance sheet accounts will be affected.
D) there will be both a debit and a credit to trade accounts receivable.

Question

Quizplus · Accepted Answer

When an account previously written off is collected, it involves reversing the write-off by debiting accounts receivable and crediting allowance for doubtful accounts, followed by recording the cash collection by debiting cash and crediting accounts receivable.

If an Account Is Collected After Having Been Previously Written