Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis.       Days Past Due             Total   0 1 to 30 31 to 60 61 to 90 Over 90   Accounts receivable $ 570,000   $ 396,000     $ 90,000     $ 36,000     $ 18,000     $ 30,000     Percent uncollectible         1 %     2 %     5 %     7 %     10 %       a. On February 1 of the next period, 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. b. On June 5 of that next period, the company unexpectedly received a $900 payment on a customer account, Oakley Company, that had previously been written off in part a. Prepare the entries necessary to reinstate the account and to record the cash received.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis.
 

    Days Past Due  
       
  Total   0 1 to 30 31 to 60 61 to 90 Over 90  
Accounts receivable $ 570,000   $ 396,000     $ 90,000     $ 36,000     $ 18,000     $ 30,000    
Percent uncollectible         1 %     2 %     5 %     7 %     10 %  
 

 
a. On February 1 of the next period, 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.
b. On June 5 of that next period, the company unexpectedly received a $900 payment on a customer account, Oakley Company, that had previously been written off in part a. Prepare the entries necessary to reinstate the account and to record the cash received.
 

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