A firm using the allowance method to provide for losses from uncollectible accounts collected the cash due from a customer whose account was previously written off. The entry to reinstate the customer's account included a credit to
A)Accounts Receivable.
B)Sales.
C)Uncollectible Accounts Expense.
D)Allowance for Doubtful Accounts.

Question

Quizplus · Accepted Answer

When a previously written-off account is collected, the firm reinstates the account by debiting Accounts Receivable and crediting Allowance for Doubtful Accounts.

A Firm Using the Allowance Method to Provide for Losses