When a company uses the allowance method of accounting for uncollectible receivables, the entry to reinstate a previously written off account would include a
A) credit to Bad Debt Expense
B) debit to Bad Debt Expense
C) debit to Allowance for Doubtful Accounts
D) credit to Allowance for Doubtful Accounts

Question

Quizplus · Accepted Answer

When a previously written off account is reinstated, the Allowance for Doubtful Accounts is credited to reverse the previous write-off and the Accounts Receivable is debited to reinstate the receivable.

When a Company Uses the Allowance Method of Accounting for Uncollectible