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Under the Direct Write-Off Method, When a Previously Written-Off Account

Question 66

Multiple Choice

Under the direct write-off method, when a previously written-off account is recovered in the same accounting period, which of the following entries is required to reinstate the account?


A) debit Accounts Receivable and credit Bad Debt Expense
B) debit Accounts Receivable and credit Cash
C) debit Cash and credit Bad Debt Expense
D) debit Cash and credit Accounts Receivable

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