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TEA [102]
3 years ago
14

On January 1, Wei company begins the accounting period with a $45,000 credit balance in allowance for doubtful accounts. a. On F

ebruary 1, the company determined that $9,800 in customer accounts was uncollectible; specifically, $2,400 for Oakley Co. and $7,400 for Brookes Co. Prepare the journal entry to write off those two accounts. b. On June 5, the company unexpectedly received a $2,400 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.
Business
2 answers:
GrogVix [38]3 years ago
7 0

Answer:

The Journal entry and their narrations is shown below:-

Explanation:

1. Allowance for doubtful accounts Dr,      $9,800  

      To Account receivable-Oakley Co.  $2,400

       To Account receivable-Brookes Co.            $7,400

(Being write off is recorded)

2. Account receivable-Oakley Co. Dr,          $2,400  

           To Allowance for doubtful accounts       $2,400

(Being amount reinstated is recorded)  

3. Cash Dr,                                                      $2,400  

      To  Account receivable-Oakley Co.   $2,400

(Being cash received is recorded)  

Natalka [10]3 years ago
3 0

Answer:

The journal entries are shown below

Explanation:

a. Allowance for doubtful accounts $9,800  

           To Account receivable - Oakley Co  $2,400

            To Account receivable - Brookes Co      $7,400

(Being the written off amount is recorded)

b. Account receivable - Oakley Co $2,400

             To Allowance for doubtful accounts $2,400

(Being the reinstated amount is recorded)

c. Cash $2,400  

        To Account receivable - Oakley Co  $2,400

(Being the cash receipt is recorded)  

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