The entry to record the collection of a previously written-off account needs to be recorded because a customer paid $9,600 after its accounts receivable had been written off.This entry includes a:
A)debit to Allowance for Doubtful Accounts of $9,600.
B)debit to Bad Debt Expense of $9,600.
C)credit to Bad Debt Expense of $9,600.
D)credit to Allowance for Doubtful Accounts of $9,600.

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,put the receivable back on the books by recording the opposite of the write-off.Second,record the collection of the account.The entries include (1)a debit to Accounts Receivable and a credit to Allowance for Doubtful Accounts for $9,600 and (2)a debit to Cash and a credit to Accounts Receivable for $9,600.

The Entry to Record the Collection of a Previously Written-Off