Dexter Company applies the direct write-off method in accounting for uncollectible accounts. March 11 Dexter determines that it cannot collect $9,900 of its accounts receivable from its customer Leer Company. 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 selected transactions of Dexter.

bad debt expense 9,900 debit

account receivable 9,900 credit

--to record Leer uncolelctible amount---

account receivable 9,900 credit

bad debt expense 9,900 debit

cash 9,900 debit

account receivable 9,900 credit

- - to record recovery of Leer uncollectible and collection - --

Explanation:

Dexter Company applies the direct write-off method:

This means when a write-off is made is used directly.

the journal will show a decrease in the accounts receivable and delcare the expense for bad debt.

When the account is recovery then, It will reverse than entry and record the collection as normal.