Exercise 7-5 Writing off receivables LO P2

On January 1, Wei Company begins the accounting period with a $30,000 credit balance in Allowance for Doubtful Accounts.

1. On February 1, the company determined that $6,800 in customer accounts was uncollectible; specifically, $900 for Oakley Co. and $5,900 for Brookes Co. Prepare the journal entry to write off those two accounts.
2. On June 5, the company unexpectedly received a $900 payment on a customer account, Oakley Company, that had previously been written off in parta. Prepare the entries to reinstate the account and record the cash received.