Question

March 11 Dexter determines that it cannot collect $8,100 of its accounts receivable from Leer Co. 29 Leer Co. 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.

Answer 1

Answer and Explanation:

The journal entries are shown below:

On Mar 11

Bad debt expense $8,100

To Account receivable $8,100

(Being bad debt expense is recorded)

On Mar 29

Account receivable Dr $8,100

To bad debt expense $8,100

(Being written off amount is recorded)

On Mar 29

Cash Dr $8,100

To account receivable $8,100

(Being collection is recorded)