Accounting · Bad Debts Recovery
During its accounting year end to 31 May 20X7, Jupiter Co unexpectedly received a receipt of $382 in relation to a debt which had been written off earlier during the year. What accounting entries should Jupiter Co make to update the general ledger to reflect this situation?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Debit Irrecoverable debts $382; Credit Bank $382
- 2Debit Bank $382; Credit Allowance for receivables $382
- 3Debit Bank $382; Credit Receivables $382
- 4Debit Bank $382; Credit Irrecoverable debts expense (or Sundry Income) $382✓
Correct answer
Debit Bank $382; Credit Irrecoverable debts expense (or Sundry Income) $382
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