The collection of an account that had been previously written off under the allowance method for uncollectible accounts
A) increases net income in the period of collection.
B) involves a credit to Bad Debts Expense.
C) will usually require two journal entries.
D) is recorded by debiting Cash and crediting Bad Debts Expense.

Question

Quizplus · Accepted Answer

When an account previously written off is collected, two journal entries are required: one to reverse the write-off and another to record the cash collection.

The Collection of an Account That Had Been Previously Written