Reinstated a written-off Account 1. Reinstate the receivable 2. Receive the cash against it Reason: For control purposes, the person who receives and records Cash Receipts is not the person with authority to Write-off Receivables. Likely a manager is reinstating the receivable and the Cash Receipts clerk is recording the cash receipt. Fred sends us a check for $700 Step 1: The account must be reinstated. 1 2 Date 1 2 GENERAL JOURNAL Step 2: The cash received is recorded. Date Description GENERAL JOURNAL Description Post ref Post ref Debit Debit Page Credit Page Credit 1 2 1 2

Reinstated a written-off Account 1. Reinstate the receivable 2. Receive the cash against it Reason: For control purposes, the person who receives and records Cash Receipts is not the person with authority to Write-off Receivables. Likely a manager is reinstating the receivable and the Cash Receipts clerk is recording the cash receipt. Fred sends us a check for $700 Step 1: The account must be reinstated. 1 2 Date 1 2 GENERAL JOURNAL Step 2: The cash received is recorded. Date Description GENERAL JOURNAL Description Post ref Post ref Debit Debit Page Credit Page Credit 1 2 1 2

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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