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

Leon Gonzalez

Business

14 July, 20:31

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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Giovanni Howell · 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)