a company has written off an account receivable and the client sends in a check:
A) Reopen the client's account at the amount written off.
B) Reopen the client's account at the amount sent in.
C) Debit cash and credit revenue.
D) None of the above

Question

Quizplus · Accepted Answer

When a company writes off an account receivable, it considers the account uncollectible and removes it from its books. If the client later sends in a check, the company should reopen the client's account at the amount written off to accurately reflect the transaction in its financial records. This involves reversing the write-off by debiting accounts receivable and crediting the allowance for doubtful accounts for the amount written off, and then recording the payment received by debiting cash and crediting accounts receivable.

A Company Has Written Off an Account Receivable and the Client