Question

If Modern Company received $3,650 from Connor Young Company on March 12 for the total amount of an account that had been written off on March 1, the entry to reinstate the account under the direct write-off method would include:______. a. a debit to Allowance for Doubtful Accounts of $3,650.

b. is the same as it would be under the allowance method.
c. includes a credit to Bad Debt Expense of $3,650.
d. includes a credit to Cash of $3,650.

Answer 1

Step-by-step explanation:

Under the direct write-off method , the journal entry is

Bad debt expense A/c Dr XXXXX

To Account receivable A/c XXXXX

(Being the bad debt expense is recorded)

For recording this journal entry, we Debited the bad debt expense and credited the account receivable

This is the answer. Hence, all the given options are incorrect