recovery of receivable previously written off, $200. start by preparing the entry to reinstate the receivable
recovery of receivable previously written off, $200. start by preparing the entry to reinstate the receivable
Answer
Explanation:
Step1: Re - establish the receivable
When reinstating a receivable that was previously written off, we debit Accounts Receivable (to increase the asset) and credit Allowance for Doubtful Accounts (to reverse the previous write - off effect on the contra - asset account). Debit: Accounts Receivable $200$ Credit: Allowance for Doubtful Accounts $200$
Answer:
| Date | Accounts and Explanation | Debit | Credit |
|---|---|---|---|
| Aug | Accounts Receivable | $200$ | |
| Allowance for Doubtful Accounts | $200$ |