When an uncollectible account is recovered after it has been written off, which of the following accounts will be credited in the process? Allowance for Doubtful Accounts and Cash Accounts Receivable and Allowance for Doubtful Accounts Allowance for Doubtful Accounts and Bad Debts Expense Cash and Account Receivable

Question

Business

Eliezer

19 July, 01:28

When an uncollectible account is recovered after it has been written off, which of the following accounts will be credited in the process? Allowance for Doubtful Accounts and Cash Accounts Receivable and Allowance for Doubtful Accounts Allowance for Doubtful Accounts and Bad Debts Expense Cash and Account Receivable

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Answers (2)

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Reyna Sloan · Answer 1

Allowance for Doubtful Accounts and Cash Accounts Receivable

Explanation:

Allowance for Doubtful Accounts will be credited and Accounts Receivable will be debited in the first entry.

Larissa Sexton · Answer 2

Accounts receivable and allowance for doubtful accounts

Explanation:

Account receivable is the balance of the money due to a firm for goods sold and services rendered or used but not yet paid by the customers. It is use to record the receipt of money for items and services sold or rendered on credit.

While allowance for doubtful account is an estimate of the accounts receivable which are expected not to be collectible.

So when an uncollectible amount is eventually recovered after mbeung written off, the accounts receivable and allowance for doubtful account gets credited.