When an Account That Was Written Off Is Later Collected

question 7

Short Answer

When an account that was written off is later collected, the entry to reverse the write-off is recorded as a ____________________ to Accounts Receivable and the customer's account.

---

Definitions:

SUVs

SUVs, or Sport Utility Vehicles, are a type of vehicle that combines elements of road-going passenger cars with features from off-road vehicles, like higher ground clearance.

Excise Tax

A tax levied on specific goods, services, or transactions, such as alcohol, tobacco, and gasoline, often intended to discourage their use or generate revenue.

SUVs

Sport Utility Vehicles; a category of large vehicles that are designed for off-road use or have capabilities for off-road use but are often used as family cars.

Downward-Sloping

A characteristic of demand curves in economics, indicating that demand decreases as the price increases.