Chapter 8, Problem 8.4E

Recording Write-Offs and Recoveries

Prior to recording the following, Elite Electronics, Inc., had a credit balance of $2,000 in its Allowance for Doubtful Accounts.

Required:

Prepare journal entries for each transaction.

1. a. On August 31, a customer balance for $300 from a prior year was determined to be uncollectible and was written off.
2. b. On December 15, the customer balance for $300 written off on August 31 was collected in full.