If an account receivable balance previously written off using the direct write-off method is later collected in full, the entry

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2 years ago

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to record the payment must include a credit to:

1 answer:

chubhunter [2.5K] · Answer 1 · 2023-07-12T22:33:06+03:00

The entry to record the payment of an account receivable balance with direct write-off method must include a credit bad debt expense .

<h3>What is bad debt expense ?</h3>

A bad debt expense can be regarded as the expenses that us recorded when receivable is no longer collectible .

This is because a customer is unable to pay an outstanding debt as a result of different reasons such as bankruptcy or other financial problems.

Learn more about bad debt expense at;