JournaldrillRecovery: reinstating the account
A journal entry exercise from Journaldrill. Solve it with an account picker and debit and credit fields in your browser, and it is checked the moment you submit.
The task
Last year Pinecrest Furniture wrote off a $640 account owed by Dana Vale. Dana has now contacted the company and promised to pay the full amount. Record only the entry that reinstates Dana's account; the cash collection will be recorded separately.
What this exercise teaches
The reinstatement reverses the write-off for the $640 recovered. The collection entry that follows would debit Cash and credit Accounts Receivable for $640.
A hint if you get stuck
Reverse the original write-off so the receivable is back on the books.
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