Mandy Smith's Account Was Written Off Last Year

Mandy Smith's account was written off last year. She owed City Company $5,000. Using the allowance method, the journal entry to reinstate her account involves:

A) a debit to Smith's account receivable and a credit to bad-debt expense.
B) a debit to allowance for doubtful accounts and a credit to Smith's account receivable.
C) a debit to bad-debt expense and a credit to Smith's account receivable.
D) a debit to Smith's account receivable and a credit to allowance for doubtful accounts.

Correct Answer:

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