Answer:
On April 18, Wears wrote off a $ 6 comma 100 account receivable from customer W. Jalan
Debit Bad debt expense $6,100
Credit Accounts receivable $6,100
Being entries to write off debts due from W. Jalan
On May 24, Wears unexpectedly received full payment from Jalan on the previously written off account
Debit Cash account $6,100
Credit Bad debt expense $6,100
Being entries to record cash collected for debt previously written off
Explanation:
Ordinarily, When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.
To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.
Where a debit that had previously been determined to have gone bad gets settled, debit cash and credit bad debt expense.
However, these entries are posted directly between the bad debt expense account and the accounts receivable if the company uses the direct write off method.
