Question

on january 1, wei company begins the accounting period with a $32,000 credit balance in allowance for doubtful accounts.
a. on february 1, the company determined that $7,200 in customer accounts was uncollectible; specifically, $1,100 for oakley company and $6,100 for brookes company. prepare the journal entry to write off those two accounts.
b. on june 5, the company unexpectedly received a $1,100 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.
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journal entry worksheet
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on february 1, the company determined that $7,200 in customer accounts was uncollectible; specifically, $1,100 for oakley company and $6,100 for brookes company. prepare the journal entry to write off those two accounts.
note: enter debits before credits.
date general journal debit credit
february 01

Explanation:

Step1: Write - off uncollectible accounts

When writing off uncollectible accounts, we debit the Allowance for Doubtful Accounts and credit the Accounts Receivable for the specific customers.

Date	General Journal	Debit	Credit
	Accounts Receivable - Oakley Company		$1,100
	Accounts Receivable - Brookes Company		$6,100

Step2: Reinstate the written - off account

To reinstate the written - off account of Oakley Company, we debit Accounts Receivable and credit Allowance for Doubtful Accounts.

Date	General Journal	Debit	Credit
	Allowance for Doubtful Accounts		$1,100

Step3: Record the cash received

When recording the cash received from Oakley Company, we debit Cash and credit Accounts Receivable.

Date	General Journal	Debit	Credit
	Accounts Receivable - Oakley Company		$1,100

Answer:

Date	General Journal	Debit	Credit
	Accounts Receivable - Oakley Company		$1,100
	Accounts Receivable - Brookes Company		$6,100
June 05	Accounts Receivable - Oakley Company	$1,100
	Allowance for Doubtful Accounts		$1,100
June 05	Cash	$1,100
	Accounts Receivable - Oakley Company		$1,100