Answer:
a. Debit Bad debt expense $15,000
Credit Allowance for doubtful debt $15,000
Debit Allowance for doubtful debt $15,000
Credit Accounts receivables $15,000
Being entries to write-off of the uncollectible receivable
b. Debit Cash account $15,000
Credit Bad debt expense $15,000
Being entries to recognize collection previously written off
c. Debit Bad debt expense $820
Credit Bad debt expense $820
Being entries to record adjustment for bad debt expense.
Explanation:
When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.
To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.
Where a debit that had previously been determined to have gone bad gets settled, debit cash and credit bad debt expense.
