Question

Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis Days Past Due Total 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $570,000 $396,000 $90,000 $36,000 $18,000 $30,000 Percent uncollectible 1% 2% 7% 10% 5% a. On February 1 of the next period, 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 of that next period, 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 View transaction list View journal entry worksheet nu

Answer 1

Credit Debit $ 6,800 Date Account titles Feb.1 Allowance for doubtful accounts Accounts receivable - Oakley Co Accounts receivable - Brookes Co (To record account receivables written off) $ 900 5,900 $ $ 900 June.5 Accounts receivable - Oakley Co Allowance for doubtful accounts (To record written off reversal) 900 $ 900 Cash Accounts receivable - Oakley Co (To record cash received) $ 900