dexter company uses the direct write - off method. march 11 dexter determines that it cannot collect $8,300…
dexter company uses the direct write - off method. march 11 dexter determines that it cannot collect $8,300 of its accounts receivable from leer company. march 29 leer company unexpectedly pays its account in full to dexter company. dexter records its recovery of this bad debt. prepare journal entries to record the above transactions. view transaction list journal entry worksheet record write - off of leer company account. note: enter debits before credits. date general journal debit credit march 11
Answer
Explanation:
Step1: Record write - off entry
When writing off an uncollectible account using the direct write - off method, we debit Bad Debt Expense and credit Accounts Receivable.
| Date | General Journal | Debit | Credit |
|---|---|---|---|
| March 11 | Bad Debt Expense | $8,300 | |
| Accounts Receivable - Leer Company | $8,300 |
Step2: Record recovery entry
First, we reverse the write - off by debiting Accounts Receivable and crediting Bad Debt Expense. Then we record the cash receipt by debiting Cash and crediting Accounts Receivable.
| Date | General Journal | Debit | Credit |
|---|---|---|---|
| March 29 | Accounts Receivable - Leer Company | $8,300 | |
| Bad Debt Expense | $8,300 | ||
| March 29 | Cash | $8,300 | |
| Accounts Receivable - Leer Company | $8,300 |
Answer:
| Date | General Journal | Debit | Credit |
|---|---|---|---|
| March 11 | Bad Debt Expense | $8,300 | |
| Accounts Receivable - Leer Company | $8,300 | ||
| March 29 | Accounts Receivable - Leer Company | $8,300 | |
| Bad Debt Expense | $8,300 | ||
| March 29 | Cash | $8,300 | |
| Accounts Receivable - Leer Company | $8,300 |