Prior to recording the following. Elite Electronics, Incorporated, had a credit balance of $2,500 in its Allowance for Doubtful Accounts. a. On August 31, a customer balance for $350 from a prior year was determined to be uncollectible and was written off b On December 15, the customer balance for $350 written off on August 31 was collected in full. Required: For each transaction listed above, indicate the amount and direction (+ or -) of effects on the financial statement accounts and on the overall accounting equation. Hint: On December 15th, first reinstate the Accounts receivable and then record the collection of cash. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign.) Liabilities Assets Stockholders' Equity

Prior to recording the following. Elite Electronics, Incorporated, had a credit balance of $2,500 in its Allowance for Doubtful Accounts. a. On August 31, a customer balance for $350 from a prior year was determined to be uncollectible and was written off b On December 15, the customer balance for $350 written off on August 31 was collected in full. Required: For each transaction listed above, indicate the amount and direction (+ or -) of effects on the financial statement accounts and on the overall accounting equation. Hint: On December 15th, first reinstate the Accounts receivable and then record the collection of cash. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign.) Liabilities Assets Stockholders' Equity

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Blackhorse Productions, In., used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $19,350. The account had an unadjusted credit balance of $10,000 at that time. Required: Prepare journal entries for each of the following. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) a. The appropriate bad debt adjustment was recorded. b. Later, an account receivable for $1,000 was determined to be uncollectible and was written off. View transaction list Journal entry worksheet 1 2 > Record the end-of-period adjustment for bad debts under the aging of accounts receivable method. Note: Enter debits before credits. Transaction General Journal Debit Credit a Record entry Clear entry View general journal