Question

Dexter Company applies the direct write-off method in accounting for uncollectible accounts.

March 11 Dexter determines that it cannot collect $8,000 of its accounts receivable from its customer Lester Company.
29 Lester 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 selected transactions of Dexter.

Record write off of Lester Company account.

Record write off of Lester Company account.

Record the reinstatement of an account previously written off.

Record write off of Lester Company account.

Record the reinstatement of an account previously written off.

Record the cash received on account.

Answer 1

Answer:

Explanation:

The journal entries are shown below:

On March 11:

Bad debt expense A/c Dr $8,000

     To Accounts receivable A/c $8,000

(Being uncollectible amount is recorded)

On March 29:

Accounts receivable A/c Dr $8,000

  To Bad debt expense A/c  $8,000

(Being reversal entry is recorded)

On March 29:

Cash A/c Dr $8,000

    To  Accounts receivable A/c $8,000

(Being cash received is recorded