Dexter company uses the direct write-off method. march 11 dexter determines that it cannot collect $45,000 of its accounts receivable from leer co. 29 leer co. unexpectedly pays its account in full to dexter company. dexter records its recovery of this bad debt. prepare journal entries to record the above transactions.

The Journal entries are as follows:

(i) On March 11,

Bad debt expense A/c  Dr. $45,000

To accounts receivable                     $45,000

(To record uncollectible accounts receivable)

(ii) On March 29,

Accounts receivable A/c   Dr. $45,000

To Bad debt expense A/c                      $45,000

(To record reversal of written off accounts receivable)

(iii) On March 29,

Cash A/c   Dr. $45,000

To accounts receivable   $45,000

(To record receipt of cash from customer)

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know