Question

Assume that the accountant of Diamond Furniture on March 1, 2018, authorizes a write-off of the RO 1000 balance owed by Mr Abdul Salam. But on July 1, Mr Abdul Salam pays the RO 1000 amount that Diamond Furniture had written off on March 1. From the following given options, identify which of the following two journal entries can be pass in the books of Diamond Furniture for the recovery of uncollectable accounts receivables under allowance method? i) Dr Accounts receivables A/C OMR 1000 and Cr Allowance for bad debt A/C OMR1000 ii) Dr Allowance for bad debt A/C OMR1000 and Cr Accounts receivables A/C OMR1000 iii) Dr Cash A/C OMR 1000 and Cr Accounts receivables A/C OMR 1000 iv) Dr Accounts receivables A/C OMR 1000 and Cr Cash A/C OMR 1000

          Assume that the accountant of Diamond Furniture on March 1, 2018, authorizes a write-off of the RO
1000 balance owed by Mr Abdul Salam. But on July 1, Mr Abdul Salam pays the RO 1000 amount that
Diamond Furniture had written off on March 1. From the following given options, identify which of the
following two journal entries can be pass in the books of Diamond Furniture for the recovery of
uncollectable accounts receivables under allowance method?
i) Dr Accounts receivables A/C OMR 1000 and Cr Allowance for bad debt A/C OMR1000
ii) Dr Allowance for bad debt A/C OMR1000 and Cr Accounts receivables A/C OMR1000
iii) Dr Cash A/C OMR 1000 and Cr Accounts receivables A/C OMR 1000
iv) Dr Accounts receivables A/C OMR 1000 and Cr Cash A/C OMR 1000

Assume that the accountant of Diamond Furniture on March 1, 2018, authorizes a write-off of the RO
1000 balance owed by Mr Abdul Salam. But on July 1, Mr Abdul Salam pays the RO 1000 amount that
Diamond Furniture had written off on March 1. From the following given options, identify which of the
following two journal entries can be pass in the books of Diamond Furniture for the recovery of
uncollectable accounts receivables under allowance method?
i) Dr Accounts receivables A/C OMR 1000 and Cr Allowance for bad debt A/C OMR1000
ii) Dr Allowance for bad debt A/C OMR1000 and Cr Accounts receivables A/C OMR1000
iii) Dr Cash A/C OMR 1000 and Cr Accounts receivables A/C OMR 1000
iv) Dr Accounts receivables A/C OMR 1000 and Cr Cash A/C OMR 1000

Added by Charles B.

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