On January 1, Wei company begins the accounting period with a $35,000 credit balance in Allowance for Doubtful Accounts. On February 1, the company determined that $7,800 in customer accounts was uncollectible; specifically, $1,400 for Oakley Co. and $6,400 for Brookes Co. Prepare the journal entry to write off those two accounts. On June 5, the company unexpectedly received a $1,400 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.

Wei Company

Journal Entry:

Debit Allowance for Doubtful Accounts $7,800

Credit Accounts Receivable $7,800

To write-off accounts determined to be uncollectible.

Explanation:

a) Data and Calculations:

Allowance for Doubtful Accounts (Balance) = $35,000

Uncollectible accounts:

Oakley Co. $1,400

Brookes Co. $6,400

Total = $7,800

b) The amount of $7,800 considered to be uncollectible is written off against the Accounts Receivable.  This reduces the Accounts Receivable while correspondingly increasing the Allowance for Doubtful Accounts.

i believe that it is a 45% chance.

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough