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 debit entry will be to accounts receivable to reflect the collection, and the credit entry will be to the allowance for doubtful accounts to remove the balance that was previously written off. This will have an impact on both income statement and statement of financial position accounts.

If an Account Is Collected After Having Been Previously Written