Question

When an uncollectible account is recovered after it has been written off, two journal entries are recorded. Which account will be debited in these journal entries?

1) Accounts Payable
2) Accounts Receivable
3) Bad Debt Expense
4) Allowance for Doubtful Accounts

Answer 1

When an uncollectible account is recovered, the Accounts Receivable account is debited and then credited in two separate journal entries.

Step-by-step explanation:

When an uncollectible account is recovered after it has been written off, two journal entries are recorded.

In the first journal entry, the Accounts Receivable account is debited to remove the previously written-off amount. This reduces the amount of outstanding customer balances.

In the second journal entry, the Accounts Receivable account is credited to reflect the recovery of the previously written-off amount. This increases the amount of outstanding customer balances.