Under the Direct Write-Off Method, to Record the Receipt of Cash

question 6

Multiple Choice

Under the direct write-off method, to record the receipt of cash after an account has previously been written off, you would first:

• A) debit Cash and credit the customer's account.
• B) reinstate the customer's account.
• C) debit Allowance for Doubtful Accounts.
• D) debit Bad Debts Expense.
• E) credit Accounts Receivable.

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