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Tutorial 5876

Newton Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Newton Company wrote off the $3,000 uncollectible acc...

Question:

Newton Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Newton Company wrote off the $3,000 uncollectible account of its customer, P. Best. On July 10, Newton received a check for the full amount of $3,000 from Best. On July 10, the entry or entries Newton makes to record the recovery of the bad debt is: A) Accounts Receivable-P. Best 3,000 Allowance for Doubtful Accounts 3,000 Cash 3,000 Accounts Receivable-P. Best 3,000 B) Cash 3,000 Bad Debt Expense 3,000 C) Accounts Receivable-P. Best 3,000 Bad Debt Expense 3,000 Cash 3,000 Accounts Receivable – P. Best 3,000 D) Allowance for Doubtful Accounts 3,000 Accounts Receivable-P. Best 3,000 Accounts Receivable-P. Best 3,000 Cash 3,000 E) Cash 3,000 Accounts Receivable-P. Best 3,000 A. E Above. B. D Above. C. B Above. D. C Above. E. A Above.

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