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timofeeve [1]
3 years ago
7

Your company wrote off $350 in accounts receivable two months ago when a customer went bankrupt. That customer reorganizes and n

ow pays the $350. Your company should:
Business
1 answer:
Dafna1 [17]3 years ago
3 0

Answer:

Dr Accounts Receivable

Cr Allowance for Doubtful Accounts

Dr Cash

Cr Accounts Receivable

Explanation:

Based on the information given we were told that two months ago when the company customer went bankrupt the company first wrote off the amount of $350 in accounts receivable in which the customer later reorganizes and now pays the amount of $350 which means that what the company should do is to first Debit Accounts Receivable and Credit Allowance for Doubtful Accounts and Then Debit Cash and Credit Accounts Receivable.

Dr Accounts Receivable

Cr Allowance for Doubtful Accounts

Dr Cash

Cr Accounts Receivable

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