A company that uses the allowance method writes off a specific account as uncollectible,but then the customer pays.The entries made upon receiving payment will
A)decrease Cash.
B)decrease Allowance for Uncollectible Accounts.
C)increase Allowance for Uncollectible Accounts.
D)decrease Uncollectible Accounts Expense.

Question

Quizplus · Accepted Answer

When a previously written-off account is collected, the company reverses the write-off by increasing the Allowance for Uncollectible Accounts and then records the cash collection.

A Company That Uses the Allowance Method Writes Off a Specific