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3 January, 02:01

Barnes Books allows for possible bad debts. On May 7, Barnes writes off a customer account of $5,300. On September 9, the customer unexpectedly pays the $5,300 balance. Record the cash collection on September 9.

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  1. 3 January, 05:16
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    The cash collection on September 9 is records by the entry:

    Debit Cash $5,300

    Credit Accounts Receivable $5,300

    Explanation:

    Barnes Books allows for possible bad debts. On May 7, the company writes off a customer account. The journal entry:

    Debit Allowance for Doubtful Accounts $5,300

    Credit Accounts Receivable $5,300

    On September 9, the customer unexpectedly pays the $5,300 balance. The journal entries:

    1. Debit Accounts Receivable $5,300

    Credit Allowance for Doubtful Accounts $5,300

    2. Debit Cash $5,300

    Credit Accounts Receivable $5,300
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