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.

Question

Business

Gavyn Brewer

6 October, 10:57

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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Answers (1)

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Kira · Answer 1

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)