Question

Recovery of Previously Written Off A/R

Answer 1

Answer and Explanation:

The journal entries are shown below

On Sep 10

Account receivable - king $200

            To Bad debt expense $200

(Being the reinstate previously written off account receivable is recorded)

Here account receivable is debited as it increased the assets and credited the bad debt expense as it decreased the expenses

On Sep 10

Cash Dr $200

    To Account receivable - king $200

(Being cash collection is recorded)

Here the cash is debited as it increased the assets and account receivable is credited as it decreased the assets