Under the direct write-off method, when a previously written-off account is recovered in the same accounting period, which of the following entries is required to reinstate the account?
A) debit Accounts Receivable and credit Bad Debt Expense
B) debit Accounts Receivable and credit Cash
C) debit Cash and credit Bad Debt Expense
D) debit Cash and credit Accounts Receivable

Question

Quizplus · Accepted Answer

When a previously written-off account is recovered, the account needs to be reinstated by debiting Accounts Receivable and crediting Bad Debt Expense, reversing the initial write-off entry.

Under the Direct Write-Off Method, When a Previously Written-Off Account