[Q1] The entity collected $800 from the accounts receivable that had been written-off in the past.
Prepare a journal entry to record this transaction.
[Journal Entry]
Collection of accounts receivable previously written-off requires two journal entries.
(1) Journal entry to restore accounts receivable and the corresponding balance of allowance for doubtful accounts
(2) Journal entry to record the collection of accounts receivable
Journal entry to restore accounts receivable and allowance for doubtful accounts
| Debit | Credit | |
| Accounts receivable | 800 | |
| Allowance for doubtful accounts | 800 |
[Notes]
Debit: Restoration of accounts receivable
Credit: Restoration of allowance for doubtful accounts
[Journal Entry]
Journal entry to record the collection of the accounts receivable restored
| Debit | Credit | |
| Cash | 800 | |
| Allowance for doubtful accounts | 800 |
[Notes]
Debit: Increase in cash
Credit: Decrease in accounts receivable