Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 18 - No. 3)
What is the journal entry to record a debt recovered which was previously written off, assuming the allowance method?
Debit Cash, Credit Bad Debt Expense; and Debit Accounts Receivable, Credit Allowance for Doubtful Accounts.
Debit Cash, Credit Accounts Receivable; and Debit Accounts Receivable, Credit Allowance for Doubtful Accounts.
Debit Accounts Receivable, Credit Allowance for Doubtful Accounts; and Debit Cash, Credit Accounts Receivable.
Debit Cash, Credit Accounts Receivable.
Explanation
The first entry is to reinstate the account (reversing the write-off), and the second is to record the cash receipt.
Comments (0)
