Ask Question
29 October, 10:08

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.

+3
Answers (1)
  1. 29 October, 11:03
    0
    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
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “On January 1, Wei company begins the accounting period with a $30,000 credit balance in allowance for doubtful accounts. a. On February 1, ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers