exercise 9 - 5 (algo) writing off receivables lo p2\non january 1, wel company begins the accounting period…

exercise 9 - 5 (algo) writing off receivables lo p2\non january 1, wel company begins the accounting period with a $45,000 credit balance in allowance for doubtful accounts.\n a. on february 1, the company determined that $9,800 in customer accounts was uncollectible; specifically, $2,400 for oakley company and $7,400 for brookes company. prepare the journal entry to write off those two accounts.\n 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 to reinstate the account and record the cash received.\nview transaction list\njournal entry worksheet\n< 1 2 3\nrecord the reinstatement of oakleys account, if necessary.\nnote: enter debits before credits.\ndate general journal debit credit\njune 05

exercise 9 - 5 (algo) writing off receivables lo p2\non january 1, wel company begins the accounting period with a $45,000 credit balance in allowance for doubtful accounts.\n a. on february 1, the company determined that $9,800 in customer accounts was uncollectible; specifically, $2,400 for oakley company and $7,400 for brookes company. prepare the journal entry to write off those two accounts.\n 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 to reinstate the account and record the cash received.\nview transaction list\njournal entry worksheet\n< 1 2 3\nrecord the reinstatement of oakleys account, if necessary.\nnote: enter debits before credits.\ndate general journal debit credit\njune 05

Answer

Explanation:

Step1: Write - off uncollectible accounts

When writing off uncollectible accounts, we debit the Allowance for Doubtful Accounts and credit Accounts Receivable for each customer. Debit: Allowance for Doubtful Accounts $9,800 Credit: Accounts Receivable - Oakley Company $2,400 Credit: Accounts Receivable - Brookes Company $7,400

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. Debit: Accounts Receivable - Oakley Company $2,400 Credit: Allowance for Doubtful Accounts $2,400

Step3: Record the cash received

When recording the cash received from Oakley Company, we debit Cash and credit Accounts Receivable. Debit: Cash $2,400 Credit: Accounts Receivable - Oakley Company $2,400

Answer:

Date General Journal Debit Credit
February 1 Allowance for Doubtful Accounts $9,800
Accounts Receivable - Oakley Company $2,400
Accounts Receivable - Brookes Company $7,400
June 5 Accounts Receivable - Oakley Company $2,400
Allowance for Doubtful Accounts $2,400
June 5 Cash $2,400
Accounts Receivable - Oakley Company $2,400