Dexter Company uses the direct write-off method.March 11 Dexter determines that it cannot collect $45,000 of its accounts receivable from Leer Co.29 Leer Co. unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt.Prepare journal entries to record the above transactionsView transaction listJournal entry worksheet<1Record write off of Leer Co. accountNote: Enter debits before credits.DateGeneral JournalDebitCreditMarch 11 Cash45,00045,000N Dexter Company uses the direct write-off method.March 11 Dexter determines that it cannot collect $45,000 of its accounts receivable from Leer Co.29 Leer Co. unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debtPrepare journal entries to record the above transactions.View transaction listJournal entry worksheet<123Record the reinstatement of an account previously written off.Note: Enter debits before credits.DateGeneral JournalDebitCreditMarch 29

Question
Asked Oct 11, 2019
620 views
Dexter Company uses the direct write-off method.
March 11 Dexter determines that it cannot collect $45,000 of its accounts receivable from Leer Co.
29 Leer Co. unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt.
Prepare journal entries to record the above transactions
View transaction list
Journal entry worksheet
<
1
Record write off of Leer Co. account
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
March 11 Cash
45,000
45,000
N
help_outline

Image Transcriptionclose

Dexter Company uses the direct write-off method. March 11 Dexter determines that it cannot collect $45,000 of its accounts receivable from Leer Co. 29 Leer Co. unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt. Prepare journal entries to record the above transactions View transaction list Journal entry worksheet < 1 Record write off of Leer Co. account Note: Enter debits before credits. Date General Journal Debit Credit March 11 Cash 45,000 45,000 N

fullscreen
Dexter Company uses the direct write-off method.
March 11 Dexter determines that it cannot collect $45,000 of its accounts receivable from Leer Co.
29 Leer Co. unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt
Prepare journal entries to record the above transactions.
View transaction list
Journal entry worksheet
<
1
2
3
Record the reinstatement of an account previously written off.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
March 29
help_outline

Image Transcriptionclose

Dexter Company uses the direct write-off method. March 11 Dexter determines that it cannot collect $45,000 of its accounts receivable from Leer Co. 29 Leer Co. unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt Prepare journal entries to record the above transactions. View transaction list Journal entry worksheet < 1 2 3 Record the reinstatement of an account previously written off. Note: Enter debits before credits. Date General Journal Debit Credit March 29

fullscreen
check_circle

Expert Answer

Step 1

Definition of Direct Write-off Method:

The Direct Write-off method is a simple accounting approach that immediately charges off bad debt (account receivable that a company is unable to collect). With a direct write-off, a specific account receivable is deducted from sales revenue in the period it is deemed uncollectible.

Step 2

Following are the preparation of Journal Entries:

  1. To record unc...
help_outline

Image Transcriptionclose

Journal Entry Date Account Title and Explanation Post Debit Credit Amount Ref Amount March 11 Bad Debt Expenses Account Debit $45,000 To Account Receivable Account (Being to record uncollectible account receivable) $45,000

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Other

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: Ahorita Company manufactures wireless transponders for satellite applications. Ahorita has recently ...

A: Click to see the answer

question_answer

Q: Zack Gaddis owns and operates Gaddis Advertising Services. On January 1, 2018, Zack Gaddis, Capital ...

A: Equity represents the amount owned by the contributors of capital. Equity balance includes all the a...

question_answer

Q: Items on Company's Bank Statement The following items may appear on a bank statement: 1.  Bank corre...

A: Bank statement credit memo: Bank statement credit memo is an item enclosed on the bank statement ind...

question_answer

Q: The following data were taken from the financial statements of Gates Inc. for the current fiscal yea...

A: a. Calculate the ratio of fixed assets to long-term liabilities.

question_answer

Q: Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company’s two ...

A: In traditional costing system, the overheads are allocated on the basis of either the amount of dire...

question_answer

Q: I need assistance calculating ratios with the attached income statement and balance sheet:     Fi...

A: Compute gross profit percentage for year 2016 and 2017 as shown below:

question_answer

Q: Direct Labor Cost Budget MatchPoint Racket Company manufactures two types tennis rackets, the Junior...

A: Direct labor budget: A direct labor budget demonstrates the direct labor hours and its associated co...

question_answer

Q: Following is the chart of accounts of Elden Realty Company: Assets Revenue 111 Cash 411 Profess...

A: 1. Prepare the journal entries for the month of April.(April 1 to April 15). 

question_answer

Q: how do I calculate ending inventory for FIFO, LiFO, and average. I am working on problem p7-2  page ...

A: There are 3 methods for the valuation of inventory: First in, first Out Method:First in, first Out M...