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14 March, 20:58

Barnes Books allows for possible bad debts. On May 7, Barnes writes off a customer account of $6,100. On September 9, the customer unexpectedly pays the $6,100 balance. Record the cash collection on September 9. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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  1. 14 March, 21:21
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    Record the cash collection on September 9

    Bank $6,100 (debit)

    Bad Debt $6,100 (credit)

    Explanation:

    When Barnes writes off a customer account on May 7

    Bad Debts $6,100 (debit)

    Account Receivable $6,100 (credit)

    When the customer unexpectedly pays the $6,100 balance on September 9

    Bank $6,100 (debit)

    Bad Debt $6,100 (credit)

    Recognise the Assets of Cash Flowing in the entity and De-recognise the Bad Debts expense account.
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