Answer:
Journal entries
Explanation:
The journal entry are as follows
1. Allowance for doubtful debts $25,500
To Account receivable $25,500
(Being the written off amount is recorded)
2. Account receivable Dr $2,100
To Allowance for doubtful debts $2,100
(Being the reinstatement of an account previously written off is recorded)
3. Cash Dr $2,100
To Account receivable $2,100
(Being the collection of account is recorded)
4. Bad debt expense Dr $82,900
To Allowance for doubtful debts $82,900
(Being the bad debt expense is recorded)
It is computed below:
= $670,000 × 15% - ($41,000 + $25,500 + $2,100)
= $100,500 - $17,600
= $82,900
Only these entries are recorded
