On January 1, Wei company begins the accounting period with a $34,000 credit balance in Allowance for Doubtful Accounts. On February 1, the company determined that $7,600 in customer accounts was uncollectible; specifically, $1,300 for Oakley Co. and $6,300 for Brookes Co. Prepare the journal entry to write off those two accounts. On June 5, the company unexpectedly received a $1,300 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.Ple
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Exercise 9-5 Writing off receivables LO P2
On January 1, Wei company begins the accounting period with a $34,000 credit balance in Allowance for Doubtful Accounts.
- On February 1, the company determined that $7,600 in customer accounts was uncollectible; specifically, $1,300 for Oakley Co. and $6,300 for Brookes Co. Prepare the
journal entry to write off those two accounts. - On June 5, the company unexpectedly received a $1,300 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.Please use the numbers indicated in assignment. and provide solutions on requested journal
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Daley Company prepared the following aging of receivables analysis at December 31.
| Days Past Due | |||||||||||||||||||||||
| Total | 0 | 1 to 30 | 31 to 60 | 61 to 90 | Over 90 | ||||||||||||||||||
| $ | 590,000 | $ | 400,000 | $ | 94,000 | $ | 40,000 | $ | 22,000 | $ | 34,000 | ||||||||||||
| Percent uncollectible | 2 | % | 3 | % | 6 | % | 8 | % | 11 | % | |||||||||||||
Exercise 9-9 Percent of receivables method LO P3
a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method.
b. Prepare the
c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,400 debit.
Please use numbers indcated in my question and provide solutions on required journal or charts
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