Question

1. Prior to recording the following, Elite Electronics, Inc. had a credit balance of $1,000 in its Allowance for Doubtful Accounts.Required:Prepare journal entries for each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)a. On August 31, a customer balance for $200 from a prior year was determined to be uncollectible and was written off.b. On December 15, the customer balance for $200 written off on August 31 was collected in full.

Answer 1

Answer:

Explanation:

The journal entries are shown below:

a. On August 31:

Allowance for Doubtful accounts A/c Dr $200

     To Accounts receivable A/c $200

(Being the balance is written off)

b. On December 15:

Allowance for Doubtful accounts A/c Dr $200

     To Accounts receivable A/c $200

(Being the balance is written off)

Cash A/c Dr

    To Accounts receivable A/c

(Being the written off collected in cash is recorded)