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Exercise 7-3 Direct write-off method LO P1 Dexter Company applies the direct write-off method in accounting for uncollectible accounts.

March 11 Dexter determines that it cannot collect $9,600 of its accounts receivable from its customer Lester Company. 29 Lester Company unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt.

Prepare journal entries to record the above selected transactions of Dexter