Question

dexter company uses the direct write - off method. march 11 dexter determines that it cannot collect $8,800 of its accounts receivable from march 29 leer company unexpectedly pays its account in full to dexter company. dexter rec debt. prepare journal entries to record the above transactions. view transaction list journal entry worksheet < 1 2 3 record write - off of leer company account. note: enter debits before credits. date general journal debit credit march 11

Explanation:

Step1: Record write - off on March 11

When writing off an uncollectible account using the direct - write off method, we debit Bad Debt Expense and credit Accounts Receivable.

Date	General Journal	Debit	Credit
	Accounts Receivable - Leer Company		$8,800

Step2: Record collection on March 29

When the previously written - off account is paid in full, we first reverse the write - off entry by debiting Accounts Receivable and crediting Bad Debt Expense, and then record the cash receipt by debiting Cash and crediting Accounts Receivable.

Date	General Journal	Debit	Credit
	Bad Debt Expense		$8,800
March 29	Cash	$8,800
	Accounts Receivable - Leer Company		$8,800

Answer:

Date	General Journal	Debit	Credit
	Accounts Receivable - Leer Company		$8,800
March 29	Accounts Receivable - Leer Company	$8,800
	Bad Debt Expense		$8,800
March 29	Cash	$8,800
	Accounts Receivable - Leer Company		$8,800