Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 7 - Cash and Receivables - Review and Practice - Questions - Page 362: 14


Where the direct write-off approach is used, the only solution is to debit Cash and credit a revenue account entitled Uncollectible Amounts Recovered.

Work Step by Step

If the allowance method is employed, then the accountant may debit Accounts Receivable and credit the Allowance for Doubtful Accounts. An entry is then made to credit the client’s account and debit Cash upon receipt of the remittance.
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