Nigel Lighting uses the direct charge-off method of recording bad debts. On Sept. 4, the $300 account balance of Louis Blue was charged off. However, on November 15, Blue paid $70 of the amount previously written off. The entry to record the payment from Blue would include:
A) debit Accounts Receivable $300; credit Uncollectible Account Expense $300
B) debit Cash $70; credit Accounts Receivable $70
C) debit Allowance for Doubtful Accounts $70; credit Accounts Receivable $70
D) debit Uncollectible Account Expense $70; credit Cash $70
Correct Answer:
Verified
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