### Direct Write-Off Method: Journal Entries**Overview:**Dexter Company utilizes the direct write-off method for handling uncollectible accounts. Here is an example of how specific transactions are recorded when dealing with bad debts and unexpected recoveries.**Transactions:**- **March 11**: Dexter determines it cannot collect $8,600 from Leer Company.- **March 29**: Leer Company unexpectedly pays its account in full. Dexter records the recovery of this bad debt.**Task:**Prepare journal entries for these transactions.---**Journal Entry Worksheet:****Tab 1:**- **Instruction:** Record the write-off of Leer Company's account.- **Note:** Enter debits before credits.**Journal Entry Sheet:**| Date | General Journal | Debit | Credit ||-----------|---------------------------------|-------|--------|| March 11 | | | || | | | || | | | || | | | || | | | |**Explanation of the Diagram:**- The worksheet provides a structured format for recording the journal entry related to the write-off action, with columns specifically for entering date, general journal information, and respective debit and credit amounts. This ensures accurate record-keeping of financial transactions.

Answer : Date Account title Debit Credit 11 March Bed debt expenses a/c Dr. $8,600 To…

Answered: ermines that it cannot collect y…

Business

Accounting

ermines that it cannot collect y unexpectedly pays its accoun es to record the above transact

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

### Direct Write-Off Method: Journal Entries

**Overview:**
Dexter Company utilizes the direct write-off method for handling uncollectible accounts. Here is an example of how specific transactions are recorded when dealing with bad debts and unexpected recoveries.

**Transactions:**
- **March 11**: Dexter determines it cannot collect $8,600 from Leer Company.
- **March 29**: Leer Company unexpectedly pays its account in full. Dexter records the recovery of this bad debt.

**Task:**
Prepare journal entries for these transactions.

---

**Journal Entry Worksheet:**

**Tab 1:**
- **Instruction:** Record the write-off of Leer Company's account.
- **Note:** Enter debits before credits.

**Journal Entry Sheet:**

| Date | General Journal | Debit | Credit |
|-----------|---------------------------------|-------|--------|
| March 11 | | | |
| | | | |
| | | | |
| | | | |
| | | | |

**Explanation of the Diagram:**
- The worksheet provides a structured format for recording the journal entry related to the write-off action, with columns specifically for entering date, general journal information, and respective debit and credit amounts. This ensures accurate record-keeping of financial transactions.

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