Digital office elite company writes off $800 of the accounts receivable owed by pat thompson. pat thompson did end up paying the $800, so digital office elite company reversed the write off. using the allowance method, what is the journal entry to show receiving the cash from pat thompson after the write off on his account is reversed?

Explanation:    

JOURNAL ENTRY FOR BAD DEPT RECOVERY:

                   PARTICULARS                                                               DR.        CR.

                   A/C RECEIVABLE                                                         800            

                                        ALLOWANCE FOR DOUBTFUL A/C                    800

                    CASH A/C                                                                     800

                                         A/C RECEIVABLE                                                 800

As the company credit the a/c receivable when they wrote off bad dept, upon receiving the amount the company reverse their bad dept by debit the a/c receivable as technically isn't receivable now. So they are going to debit their a/c receivable to get it back on their books and credit the allowance for doubtful a/c. As the money is received they have to make another entry to debit cash a/c to show that they received the money and credit the a/c receivable to show that they collected receivable if they didn't it still be waited as to be received.

answer; the correct answer is (0.08);