If a customer pays her bill after her account has already been written off,the company receiving the payment should record the account reinstatement with which of the following?

Question

Quizplus · Accepted Answer

When a customer pays their bill after their account has been written off, the company would record the payment as a credit to cash. To reinstate the account, the company would need to reverse the previous write-off entry, which would have been a debit to allowance for doubtful accounts. Therefore, to reinstate the account, the company would credit allowance for doubtful accounts.

If a Customer Pays Her Bill After Her Account Has