Ask Question
9 April, 14:46

A large account previously written off in a prior year was unexpectedly collected in the current year. as a result, the current credit balance of allowance for uncollectible accounts is $17,460.00. the december 31 estimate of uncollectible accounts is only $15,450.00. your manager has discussed this transaction with you. you have been instructed not to credit uncollectible accounts expense for this transaction, as this would distort that expense for the current year. you need to determine an appropriate account to credit.

+4
Answers (1)
  1. 9 April, 14:49
    0
    In the given case the accounts were previously written off by debiting the Allowance for doubtful debts accounts now in order to revive these accounts receivable, we should Debit the Accounts Receivable and credit the Allowance for doubtful debts accounts. Hence the account to be credited is Allowance for doubtful debts accounts.

    Hence the answer shall be Allowance for doubtful debts accounts
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A large account previously written off in a prior year was unexpectedly collected in the current year. as a result, the current credit ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers