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) Sales.
B) Accounts Receivable.
C) Uncollectible Accounts Expense.
D) Allowance for Doubtful Accounts.

Question

Quizplus · Accepted Answer

The entry to reinstate a previously written-off account involves debiting Accounts Receivable and crediting Allowance for Doubtful Accounts, as this reverses the write-off and restores the account to its original state.

A Firm Using the Allowance Method to Provide for Losses