On June 12,because management knew with near certainty that it had no chance of collection,Sheave Company wrote off a customer's account balance in the amount of $350.On November 3,the customer mailed a payment for $350 to Sheave.To record the receipt of this payment from the customer,the company would debit:
A)Bad Debt Expense and credit Cash.
B)Accounts Receivable and credit Bad Debt Expense,and then debit Cash and credit Allowance for Doubtful Accounts.
C)Cash and credit Accounts Receivable.
D)Accounts Receivable and credit Allowance for Doubtful Accounts,and then debit Cash and credit Accounts Receivable.

Question

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Collection of a previously written off account is called a recovery and it is accounted for in two parts.First,the receivable is put back on the books by recording a journal entry that is the opposite of the entry used to record the write-off;this entry includes a debit to Accounts Receivable and a credit to Allowance for Doubtful Accounts.Second,the collection of the account receivable is recorded with a debit to Cash and a credit to Accounts Receivable.

On June 12,because Management Knew with near Certainty That It