Using the allowance method of accounting for uncollectible receivables, the entry to reinstate a specific receivable previously written off would include a
A) credit to Bad Debt Expense
B) credit to Accounts Receivable
C) debit to Allowance for Doubtful Accounts
D) debit to Accounts Receivable

Question

Quizplus · Accepted Answer

The allowance method of accounting for uncollectible receivables involves estimating the expected amount of uncollectible accounts and creating a corresponding allowance account. When a specific account is deemed uncollectible and written off, the Accounts Receivable account is credited and the Allowance for Doubtful Accounts is debited. To reinstate a specific account, the Accounts Receivable account must be debited and the Allowance for Doubtful Accounts must be credited. Therefore, the correct answer is D, debit to Accounts Receivable.

Using the Allowance Method of Accounting for Uncollectible Receivables, the Entry