During 2016, a company wrote off $7,500 in uncollectible accounts receivable. At the end of the year, bad debt expense was estimated using a percent of gross sales. In 2017, the company collected $1,500 from an account that was written off in 2016. Recording this collection would include

Question

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When a previously written-off account is collected, the Allowance for Doubtful Accounts is credited to reverse the write-off.

During 2016, a Company Wrote Off $7,500 in Uncollectible Accounts