Which of the following methods requires two entries to record the recovery of accounts receivable previously written off?
A) direct write-off
B) allowance
C) Two entries are never required.
D) Both direct write-off and allowance.

Question

Quizplus · Accepted Answer

Both direct write-off and allowance methods require two entries to record the recovery of accounts receivable previously written off. This is because the first entry is to reverse the write-off and the second entry is to record the receipt of the cash or the collection of the receivable.

Which of the Following Methods Requires Two Entries to Record