On January 1, Wei company begins the accounting period with a $30,000 credit balance in allowance for doubtful accounts. a. On February 1, the company determined that $6,800 in customer accounts was uncollectible; specifically, $900 for Oakley Co. and $5,900 for Brookes Co. Prepare the journal entry to write off those two accounts. b. On June 5, the company unexpectedly received a $900 payment on a customer account, Oakley Company, that had previously been written off in part a. Prepare the entries necessary to reinstate the account and to record the cash received.

Question

Business

Payton Love

16 November, 15:04

On January 1, Wei company begins the accounting period with a $30,000 credit balance in allowance for doubtful accounts. a. On February 1, the company determined that $6,800 in customer accounts was uncollectible; specifically, $900 for Oakley Co. and $5,900 for Brookes Co. Prepare the journal entry to write off those two accounts. b. On June 5, the company unexpectedly received a $900 payment on a customer account, Oakley Company, that had previously been written off in part a. Prepare the entries necessary to reinstate the account and to record the cash received.

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Bobby Hammond · Answer 1

Journal Entries that are required are given below

Explanation:

On February 1 (Write off) Debit Credit

Allowance for doubtful debt $6800

Account receivable (Oakley Co.) $900

Account receivable (Brookes Co.) $5900

On June 5 (Reinstating the account) Debit Credit

Account receivable (Oakley Co.) $900

Allowance for doubtful debt $900

On June 5 (Recording the cash received) Debit Credit

Cash $900

Account Receivable (Oakley Co.) $900