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Recovery of Previously Written Off A/R

September 10-King pays the $200 previously
written off as uncollectible.
Prepare both journal entries.​

1 Answer

5 votes

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

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