Ask Question
31 July, 23:56

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.

+2
Answers (1)
  1. 1 August, 00:08
    0
    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.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Dexter Company applies the direct write-off method in accounting for uncollectible accounts. March 11 Dexter determines that it cannot ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers