Solved

United Company Uses the Allowance Method of Recording Credit Losses

Question 35

Multiple Choice

United Company uses the allowance method of recording credit losses. In November 2019, United wrote off the $1,800 account of Gamma Company. In January 2020, Gamma paid the $1,800.
The entry or entries to record the payment is/are:


A) Cash 1,800
Recoveries of Accounts Written Off 1,800
B) Accounts Receivable-Gamma Co. 1,800
Allowance for Doubtful Accounts 1,800
Cash 1,800
Accounts Receivable-Gamma Co. 1,800
C) Allowance for Doubtful Accounts 1,800
Accounts Receivable-Gamma Co. 1,800
D) Accounts Receivable-Gamma Co. 1,800
Bad Debts Expense 1,800
Cash 1,800
Accounts Receivable-Gamma Co. 1,800

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents