When an Account Receivable That Has Previously Been Written Off

question 51

Short Answer

When an account receivable that has previously been written off is later paid, under the allowance method the correct accounting is to: $\begin{array} { l } \text {a. Dr. A/R }\\ \quad\quad\text {Cr. Allowance for doubtful accounts }\\ \text {Dr. Cash }\\ \quad\quad\text {Cr. A/R }\\ \text { b. Dr. Cash}\\\quad\quad \text {Cr. A/R }\\ \text {Dr. A/R }\\\quad\quad \text { Cr. Allowance for doubtful accounts}\\ \text { c. Dr. Cash}\\\quad\quad \text {Cr. AVR }\\ \text {d. Dr. A/R }\\\quad\quad \text {Cr. Allowance for doubtful accounts }\\\end{array}$

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Definitions:

Flattened Management Hierarchies

This term refers to organizational structures with fewer levels of middle management, promoting faster decision-making and closer communication among employees.

Ethics

A set of moral principles that govern the behavior of individuals and organizations.

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Actively Listening

The process of fully concentrating, understanding, responding, and remembering what is being said in a conversation.