Question
Apollo Company uses the direct write-off method of recording credit losses. Apollo Company wrote off the $3,200 account of Duck Co. in October 2016. In
Apollo Company uses the direct write-off method of recording credit losses. Apollo Company wrote off the $3,200 account of Duck Co. in October 2016. In February 2017, Apollo Company received a final $1,200 payment from Ducks trustee in bankruptcy. Apollo should make the following entry or entries to record the payment: Select one:
A. Accounts Receivable--Duck Co. 1,200 Bad Debts Expense 1,200 Cash 1,200 Accounts Receivable--Duck Co. 1,200
B. Allowance for Doubtful Accounts 1,200 Bad Debts Expense 1,200
C. Accounts Receivable--Duck Co. 1,200 Allowance for Doubtful Accounts 1,200
D. Cash 1,200 Allowance for Doubtful Accounts 1,200
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started