Answer:
Journal entries
Explanation:
The journal entries are shown below:
a. Account receivable $7878,100
To sales revenue $878,100
(Being the sales is recorded)
Cash Dr $704,650
To Account receivable $704,650
(Being the collection is recorded)
b. Allowance for doubtful debts $7,543
To Account receivable $7,543
(Being the written off amount is recorded)
c. Account receivable $3,093
To Allowance for doubtful debts $3,093
(Being the previously written off as uncollectible is recorded)
Cash Dr $3,093
To Account receivable $3,093
(Being the recovery is recorded)
d. Bad debt expense $20,900
To Allowance for doubtful debts $20,900
(Being the bad debt expense is recorded)
The computation of the bad debt expense is shown below:
= Opening balance of Allowance for Doubtful Accounts - written off amount + recovery amount - uncollectible amount
= $8,500 - $7,543 + $3,093 - $24,950
= $20,900
