On January 1, Wei Company begins the accounting period with 30,000 credit balance in allowance for Doubtful Account. On February 1, the company determined that 6,800 in customer accounts was uncontrollibles specificaly $900 for Oakly Co and 5,900 for Brooks Co. Prepare the journal entry to write off those two accounts On June 5 the company unexpectedly received a $900 payment on a customer account. Oakly Company that had previously been written off in part a. Prepare the entries to reinstate the account and record the cash received
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.
On January 1, Wei Company begins the accounting period with 30,000 credit balance in allowance for Doubtful Account.
On February 1, the company determined that 6,800 in customer accounts was uncontrollibles specificaly $900 for Oakly Co and 5,900 for Brooks Co. Prepare the
On June 5 the company unexpectedly received a $900 payment on a customer account. Oakly Company that had previously been written off in part a. Prepare the entries to reinstate the account and record the cash received
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
