Help me with this question, please! value 2.00 points E8-4 Recording Write-Offs

Question

Help me with this question, please! value 2.00 points E8-4 Recording Write-Offs and Recoveries [LO 8-2] Prior to recording the following, Elite Electronics, Inc. had a credit balance of $1,600 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 $260 from a prior year was determined to be uncollectible and was written off b. On December 15, the customer balance for $260 written off on August 31 was collected in full.

Explanation / Answer

Solution: Transaction General Journal Debit Credit a. Allowance for doubtful accounts 260 Accounts receivable 260 Transaction General Journal Debit Credit b(1) Accounts receivable 260 Allowance for doubtful accounts 260 Transaction General Journal Debit Credit b(2) Cash 260 Accounts receivable 260 Notes: Allowance for doubtful account is created to write off uncollectable accounts, so in a. allowance for doubtful account is debit and accounts receivable was also credit to reduced, in b 1. when fully recovered the written off amount , then a. opposite entry is entered to get original position of accounts receivable and Allowance for doubtful accounts, at last cash is received and accounts receivable is reduced by cash received. Please feel free to ask if anything about above solution in comment section of the question.

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