Under the allowance method of recognizing uncollectible accounts, the entry to recognize the collection of a previously written off uncollectible account
A) increases net income.
B) has no effect on the allowance for doubtful accounts.
C) decreases the allowance for doubtful accounts.
D) increases the allowance for doubtful accounts.

Question

Quizplus · Accepted Answer

When a previously written-off account is collected, the allowance for doubtful accounts is increased because the write-off is reversed.

Under the Allowance Method of Recognizing Uncollectible Accounts, the Entry