Answer and Explanation:
The journal entries are shown below:
a. Account receivable Dr $864,300
To Sales revenue $864,300
(Being the sales revenue is recorded)
Cash Dr $687,610
To Account receivable $687,610
(Being the collections is recorded)
2. Allowance for doubtful debts $6,804
To Account receivable $6,804
(Being the written off amount is recorded)
3. Account receivable Dr $3,219
To Allowance for doubtful debts $3,219
(Being the previous written off amount is recorded)
Cash Dr $3,219
To Account receivable $3,219
(Being the recovery is recorded)
4. Bad debt expense $18,075
To Allowance for doubtful debts $18,075
(Being the bad debt expense is recorded)
The computation is shown below:
= $24,000 - $9,510 + $6,804 - $3,219
= $18,075
Only these entries are recorded
