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24 September, 01:11

On January 1, Wei company begins the accounting period with a $40,000 credit balance in Allowance for Doubtful Accounts. On February 1, the company determined that $8,800 in customer accounts was uncollectible; specifically, $1,900 for Oakley Co. and $6,900 for Brookes Co. Prepare the journal entry to write off those two accounts. On June 5, the company unexpectedly received a $1,900 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. 24 September, 05:06
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    The Journal entries are as follows:

    (a) On February 1,

    Allowance for doubtful accounts Dr. $8,800

    To Account receivable-Oakley Co $1,900

    To Account receivable-Brookes Co $6,900

    (To record write off)

    (b) On June 5,

    (i)

    Account receivable-Oakley Co. Dr. $1,900

    To Allowance for doubtful accounts $1,900

    (To record amount reinstated)

    (ii)

    Cash A/c Dr. $1,900

    To Account receivable-Oakley CO $1,900

    (To record cash received)
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