Customer G. Smith owed Stonehollow Electronics $ 225. On April 27, 2018, Stonehollow determined this account receivable to be uncollectible and wrote off the account. The company uses the direct write minus off method. On July 15, 2018, Stonehollow received a check for $ 225 from the customer. How should the July 15, 2018 transaction be recorded? A) July 15 Cash 225Accounts Receivable - A. Smith 225B) July 15 Accounts Receivable - A. Smith 225Bad Debt Revenue 225July 15 Cash 225Accounts Receivable - A. Smith 225C) July 15 Cash 225Bad Debt Expense 225D) July 15 Accounts Receivable - A. Smith 225Bad Debt Expense 225July 15 Cash 225Accounts Receivable - A. Smith 225

Question

Business

Sheena

7 September, 23:41

Customer G. Smith owed Stonehollow Electronics $ 225. On April 27, 2018, Stonehollow determined this account receivable to be uncollectible and wrote off the account. The company uses the direct write minus off method. On July 15, 2018, Stonehollow received a check for $ 225 from the customer. How should the July 15, 2018 transaction be recorded? A) July 15 Cash 225Accounts Receivable - A. Smith 225B) July 15 Accounts Receivable - A. Smith 225Bad Debt Revenue 225July 15 Cash 225Accounts Receivable - A. Smith 225C) July 15 Cash 225Bad Debt Expense 225D) July 15 Accounts Receivable - A. Smith 225Bad Debt Expense 225July 15 Cash 225Accounts Receivable - A. Smith 225

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Case Whitney · Answer 1

D.

Explanation:

The option D is correct where the un-collectible will be reinstated as receivable from Smith and bad debt expense will be reversed then cash collection will be recorded and A/R from Smith will be reduced then.