Question

On January 1, Wei company begins the accounting period with a $36,000 credit balance in Allowance for Doubtful Accounts. a. On February 1, the company determined that $8,000 in customer accounts was uncollectible, specifically, $1,500 for Oakley Co. and $6,500 for Brookes Co. Prepare the journal entry to write off those two accounts. b. On June 5, the company unexpectedly received a $1,500 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 View transaction list Journal entry worksheet On February 1, the company determined that $8,000 in customer accounts was uncollectible; specifically, $1,500 for Oakley Co. and $6,500 for Brookes Co. Prepare the journal entry to write off those two accounts. Note: Enter debits before credits

Answer 1

1.

Journal

Date	Account Title and Explanation	Debit	Credit
Feb. 1	Allowance for doubtful accounts	8,000
	Accounts receivable - Oakley co.		1,500
	Accounts receivable - Brookes co.		6,500

2.

Journal

Date	Account Title and Explanation	Debit	Credit
June 5	Accounts receivable - Oakley co.	1,500
	Allowance for doubtful accounts		1,500

3.

Journal

Date	Account Title and Explanation	Debit	Credit
June 5	Cash	1,500
	Accounts receivable - Oakley co.		1,500

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Answer 2

1. On February 1, the company determined that $6,800 in customer accounts was uncollectible; specifically, $900 for Oakley Company and $5,900 for Brookes Company Prepare the journal entry to write off those two accounts.

2. 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 to reinstate the account and record the cash received.

3.