Journal entry to record the collection of accounts receivable previously written-off



[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

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