Question

Prior to recording the following Elite Electronics, Inc. had a credit balance of $2,700 in its Allowance for Doubtful Accounts. a. On August 31, a customer balance for $370 from a prior year was determined to be uncollectible and was written off. b. On December 15, the customer balance for $370 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 account balances with a minus sign.) Assets Liabilities b(1) b(2) Stockholders’ Equity