Customers whose accounts have already been written off as uncollectible will sometimes pay their deb

Customers whose accounts have already been written off as uncollectible will sometimes pay their deb

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Customers whose accounts have already been written off as uncollectible will sometimes pay their  debts. When this happens, two entries are needed to correct the company's accounting records and  show that the customer paid the outstanding balance. The first entry reinstates the customer's 
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Unformatted text preview: accounts receivable balance by debiting accounts receivable and crediting allowance for bad debts. As in the previous example, the debit to accounts receivable must be posted to the general ledger control account and to the appropriate subsidiary ledger account....
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This note was uploaded on 11/14/2011 for the course ACCT 1310 taught by Professor Staff during the Fall '10 term at Texas State.

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