A firm that uses the allowance method of recording credit losses wrote off the $

Question

A firm that uses the allowance method of recording credit losses wrote off the $500 account of Alpha Company in November, 2011. In January 2012, Alpha paid the $500. The entry or entries to record the payment is/are:
Answer
A.
Cash
500


Recoveries of Accounts Written Off

500

B.
Accounts Receivable--Alpha
500


Allowance for Uncollectible Accounts

500

Cash
500


Accounts Receivable--Alpha

500

C.
Allowance for Uncollectible Accounts
500


Accounts Receivable--Alpha

500

D.
Accounts Receivable--Alpha
500


Bad Debts Expense

500

Cash
500


Accounts Receivable--Alpha

500

E. None of the above

Explanation / Answer

B. Debit AR 500 Credit Allowance 500 Debit cash 500 Credit AR 500

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