Hecter 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
|
$190,000
|
$132,000
|
$30,000
|
$12,000
|
$6,000
|
$10,000
|
|
Percent uncollectible
|
|
1%
|
2%
|
4%
|
7%
|
12%
|
Refer to the information in Exercise 9-6 to complete the following requirements.
a. On February 1 of the next period, the company determined that $1,900 in customer accounts is uncollectible; specifically, $400 for Oxford Co. and $1,500 for Brookes Co. Prepare the journal entry to write off those accounts.
b. On June 5 of that next period, the company unexpectedly received a $400 payment on a customer account, Oxford Company, that had previously been written off in part a. Prepare the entries necessary to reinstate the account and to record the cash received.