Multiple Choice
Joe is a customer of Bobble, Inc. which uses the allowance method to account for uncollectible accounts. The company wrote off his account of $2,000 on March 15. On June 11, he sent in a payment of $800. What will Bobble, Inc. record first to reinstate his account?
A) Debit Cash; credit Accounts Receivable/Joe.
B) Debit Bad Debt Expense; credit Accounts Receivable/Joe.
C) Debit Allowance for Doubtful Accounts; credit Accounts Receivable/Joe.
D) Debit Accounts Receivable/Joe; credit Allowance for Doubtful Accounts.
Correct Answer:
Verified
Correct Answer:
Verified
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