Daley Company estimates uncollectible accounts using the allowance method at December 31. Itprepared the following aging of receivables analysis.Days Past DueTotal01 to 3031 to 6061 to 90Over 90Accounts receivable$570,000$396,000$90,000$36,000$18,000$30,000Percent uncollectible1% 2 % 5 % 7 % a.On February 1 of the next period, the company determined that $6,800 in customer accounts isuncollectible; specifically, $900 for Oakley Co. and $5,900 for Brookes Co. Prepare the journal entryto write off those accounts.10%
b.On June 5 of that next period, the company unexpectedly received a $900 payment on a customeraccount, Oakley Company, that had previously been written off in part a. Prepare the entriesnecessary to reinstate the account and to record the cash received.
1.Prepare the December 31 year-end adjusting entry for uncollectibles.