Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 17 - No. 15)
What is the journal entry to record a debt recovered which was previously written off using the direct write-off method?
Debit Cash, Credit Accounts Receivable.
Debit Accounts Receivable, Credit Bad Debt Expense.
Debit Cash, Credit Bad Debt Expense.
Debit Allowance for Doubtful Accounts, Credit Accounts Receivable.
Explanation
Direct write-off is assumed for the question. Thus, cash is received and accounts receivable is increased.
Comments (0)
