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13 December, 08:50

On January 1, Wei company begins the accounting period with a $42,000 credit balance in Allowance for Doubtful Accounts.

A. On February 1, the company determined that $9,200 in customer accounts was uncollectible; specifically, $2,100 for Oakley Co. and $7,100 for Brookes Co. Prepare the journal entry to write off those two accounts.

B. On June 5, the company unexpectedly received a $2,100 payment on a customer account, Oakley Company, that had previously been written off in part a. Prepare the entries to reinstate the account and record the cash received.

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  1. 13 December, 12:10
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    Wei company General Journal

    Feb 01

    Dr Allowance for doubtful accounts $9,200

    Cr Accounts receivable-Oakley Co. $2,100

    Cr Accounts receivable-Brookes Co. $7,100

    June 05

    Dr Accounts receivable-Oakley Co. $2,100

    Cr Allowance for doubtful accounts $2,100

    June 05

    Dr Cash $2,100

    Cr Accounts receivable-Oakley Co. $2,100

    Explanation:

    Feb 01

    (To record write off accounts receivables)

    June 05

    (To record reinstatement accounts receivable)

    June 05

    (To record receipt from accounts receivable)
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