Prior to recording the following, Elite Electronics, Inc., had a credit balance of $2,200 in its Allowance for Doubtful Accounts a. On August 31, a customer balance for $320 from a prior year was determined to be uncollectible and was written off. b. On December 15, the customer balance for $320 written off on August 31 was collected in full. Required: For each transaction listed above, indicate the amount and direction (+for increase, - for decrease) 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.) Assets Liabilities Stockholders' Equity b(2)
Prior to recording the following, Elite Electronics, Inc., had a credit balance of $2,200 in its Allowance for Doubtful Accounts a. On August 31, a customer balance for $320 from a prior year was determined to be uncollectible and was written off. b. On December 15, the customer balance for $320 written off on August 31 was collected in full. Required: For each transaction listed above, indicate the amount and direction (+for increase, - for decrease) 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.) Assets Liabilities Stockholders' Equity b(2)
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter9: Receivables
Section: Chapter Questions
Problem 12E: Using the data in Exercise 9-11, assume that the allowance for doubtful accounts for Selbys Bike Co....
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