Question

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.

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

Step-by-step explanation:

Feb 01

(To record write off accounts receivables)

June 05

(To record reinstatement accounts receivable)

June 05

(To record receipt from accounts receivable)