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AB wrote off a $500 debt owed by CD last year During the current year CD has paid the $500 in full AB has debited the bank account with S500.
Where would the credit entry for this receipt be recorded?
Suggested Answer: B
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37 comments · newest first
NO
Noelia
11 months ago
Just a reminder, the amount was $500.
KA
Kate
11 months ago
I thought irrecoverable debts expense was the way to go.
EL
Elmer
11 months ago
Wait, didn't they write off that debt? How does that work?
MO
Monroe
12 months ago
Totally agree, D is the right choice!
JE
Jesus
12 months ago
It should go to the receivables account of CD.
GI
Gilberto
1 year ago
I’m confused about whether it should be the allowance for receivables or the receivables account. I need to think this through more.
JE
Jesusa
1 year ago
This question reminds me of a practice one we did where we had to adjust accounts after a payment was received. I feel like it might be related to the sales ledger control account.
ED
Eden
1 year ago
I'm not entirely sure, but I remember something about irrecoverable debts expense being involved when debts are written off.
NE
Nenita
1 year ago
I think the credit entry should go to the receivables account of CD since they paid the debt that was previously written off.
CA
Carey
1 year ago
I'm pretty confident the answer is D. Receivables account of CD. Even though the debt was written off, the payment is still a receipt that needs to be recorded in CD's account.
TA
Tawny
1 year ago
Okay, I think I've got it. Since AB wrote off the debt, the $500 payment from CD should be recorded as a credit to the irrecoverable debts expense account, not the receivables account. The debt was already removed from the books.
CE
Celestina
1 year ago
Hmm, I'm a bit confused. Since AB wrote off the debt last year, I'm not sure if the credit entry would go to the receivables account or somewhere else. I'll need to think this through carefully.
BO
Bong
1 year ago
This seems straightforward - the credit entry should be recorded in the receivables account of CD, since they paid back the $500 debt.
ST
Stephanie
1 year ago
Ah, I remember learning about Pinpoint in class. That's an application performance monitoring tool, so it probably doesn't fit the criteria for this question. I'll focus on the tracing-specific options.
AL
Albina
1 year ago
Okay, let's see. The question is asking about a product that addresses network segment a issues and is made up of Viptela and Meraki. I'm pretty sure the answer is SD-WAN, but I'll double-check my notes to be sure.
SH
Sheridan
1 year ago
I'm a little confused by the options. I know hubs and bridges are for connecting devices, but I'm not sure how they relate to subnetting. I'll have to review my notes before answering this.
PE
Pete
1 year ago
I'm torn between standardizing the enterprise and using high MTBF products. Didn't we have a practice question that highlighted both options?
JO
Joni
1 year ago
Okay, let me see. The question is asking about the element of renewal risk analysis associated with maintaining existing pricing. I'm pretty confident the answer is customer budget.
RO
Roy
2 years ago
D, all the way! 'Receivables account of CD' is the only choice that makes sense. Anything else and I'd be as lost as a accountant in a strip club.
DE
Destiny
2 years ago
I'm going with 'Sates ledger control account'. Sounds like the most legit option to me. But hey, who knows, maybe I'm just overthinking it.
EI
Eileen
2 years ago
Yeah, that seems like the most straightforward option.
NI
Nickolas
2 years ago
I agree, it makes sense to record it directly in CD's account.
DO
Donette
2 years ago
I think it should be recorded in the Receivables account of CD.
MA
Malika
2 years ago
I'm not sure, but I think it could also be recorded in the Sates ledger control account.
CH
Christoper
2 years ago
I agree, it makes sense to record it directly in the CD's account.
JA
Janine
2 years ago
I think it should be recorded in the Receivables account of CD.
BR
Brittani
2 years ago
I see your point, Sabina. But I still think it should be recorded in the Receivables account of CD, as it directly affects their account balance.
SA
Sabina
2 years ago
I disagree. I believe the credit entry should be recorded in the Sales ledger control account, as it relates to a payment made by CD.
JE
Jerry
2 years ago
I agree with Corazon. Since CD paid the $500 in full, it makes sense to record the credit entry in their Receivables account.
CO
Corazon
2 years ago
I think the credit entry should be recorded in the Receivables account of CD.
ET
Ettie
2 years ago
Aha! The answer is clearly 'Receivables account of CD'. I mean, it's a debt owed by CD that's been paid back. Simple as that.
SH
Shawna
2 years ago
Yes, I agree. Since CD paid back the debt, it makes sense to record it in their Receivables account.
KE
Kenny
2 years ago
I think it should be recorded in the Receivables account of CD.
HE
Helene
2 years ago
Well, this one's a toughie! I'm torn between 'Receivables account of CD' and 'Irrecoverable debts expense'. Gotta love these accounting curveballs, am I right?
MA
Margurite
2 years ago
I agree, this accounting question is definitely a tough one to crack!
NO
Noelia
2 years ago
I believe it should go to Irrecoverable debts expense.
LI
Lindsey
2 years ago
I think the credit entry would be recorded in the Receivables account of CD.