The entry to record a recovery causes:
A)an increase in net accounts receivable.
B)a decrease in net accounts receivable.
C)net accounts receivable to stay the same.
D)an increase in total revenues.

Question

Quizplus · Accepted Answer

When a previously written-off account is collected,two entries are recorded-one to reverse the entry that was recorded when the account was written off and the second entry to record the cash payment.The net effect of these entries will not change the amount of net accounts receivable.

The Entry to Record a Recovery Causes