Question

On January 1, Wei company begins the accounting period with a $43,000 credit balance in Allowance for Doubtful Accounts. On February 1, the company determined that $9,400 in customer accounts was uncollectible; specifically, $2,200 for Oakley Co. and $7,200 for Brookes Co. Prepare the journal entry to write off those two accounts. On June 5, the company unexpectedly received a $2,200 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

1.

Date Account Title Debit Credit

February 1 Allowance for Doubtful accounts $9,400

Oakley Co. - Accounts Receivable $2,200

Brookes Co. - Accounts Receivable $7,200

2.

Date Account Title Debit Credit

June 5 Oakley Co. - Accounts Receivable $2,200

Allowance for Doubtful Accounts $2,200

June 5 Cash $2,200

Oakley Co. - Accounts Receivable $2,200