Exercise 9-5 Writing off receivables LO P2

On January 1, Wei company begins the accounting period with a $36,000 credit balance in Allowance for Doubtful Accounts.

1. On February 1, the company determined that $8,000 in customer accounts was uncollectible; specifically, $1,500 for Oakley Co. and $6,500 for Brookes Co. Prepare the journal entry to write off those two accounts.
2. On June 5, the company unexpectedly received a $1,500 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.

Journal entry worksheet

• On February 1, the company determined that $8,000 in customer accounts was uncollectible; specifically, $1,500 for Oakley Co. and $6,500 for Brookes Co. Prepare the journal entry to write off those two accounts.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Feb 01

Journal entry worksheet

• Record the reinstatement of Oakley's account, if necessary.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Jun 05

Journal entry worksheet

• Record the receipt of the amount due from Oakley.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Jun 05