Your Company Wrote Off $350 in Accounts Receivable Two Months

question 131

Multiple Choice

Your company wrote off $350 in accounts receivable two months ago when a customer went bankrupt.That customer reorganizes and now pays the $350.Your company should:

• A)debit Bad Debt Expense and credit Cash.
• B)debit Accounts Receivable and credit Bad Debt Expense and then debit Cash and credit Allowance for Doubtful Accounts.
• C)debit Cash and credit Accounts Receivable.
• D)debit Accounts Receivable and credit Allowance for Doubtful Accounts and then debit Cash and credit Accounts Receivable.

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