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.