If a customer pays her bill after her account has already been written off, the company receiving the payment should record the account reinstatement with which of the following?

Question

Quizplus · Accepted Answer

The account is being reinstated, meaning it was previously written off and recorded as a reduction of the allowance for doubtful accounts. Therefore, the company should record the payment as a credit to the allowance for doubtful accounts to increase the balance and reflect the fact that the account is no longer considered uncollectible.

If a Customer Pays Her Bill After Her Account Has