1. Prior to recording the following, Elite Electronics, Inc. had a credit balance of $1,000 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 $200 from a prior year was determined to be uncollectible and was written off.
b.	On December 15, the customer balance for $200 written off on August 31 was collected in full.

2. Young and Old Corporation (YOC) uses two aging categories to estimate uncollectible accounts. Accounts less than 60 days are considered young and have a 3% uncollectible rate. Accounts more than 60 days are considered old and have a 35% uncollectible rate.

Required:

If YOC has $111,000 of young accounts and $390,000 of old accounts, how much should be reported in the Allowance for Doubtful Accounts?

	Amount to be Reported

3. If YOCs Allowance for Doubtful Accounts currently has an unadjusted credit balance of $39,000, how much should be credited to the account?

Amount to be Credited

5. If YOCs Allowance for Doubtful Accounts has an unadjusted debit balance of $4,900, how much should be credited to the account?

	Amount to be Credited

6. Fraud Investigators Inc. operates a fraud detection service.

a.

On March 31, 10 customers were billed for detection services totaling $31,000.

b.

On October 31, a customer balance of $1,800 from a prior year was determined to be uncollectible and was written off.

c.

On December 15, a customer paid an old balance of $840, which had been written off in a prior year.

d.

On December 31, $560 of bad debts were estimated and recorded for the year.

Prepare journal entries for each transaction above. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

7. Complete the following table, indicating the amount and effect (+ for increase, for decrease, and NE for no effect) of each transaction. Ignore income taxes.

Transaction	Net Receivables	Net Sales	Income From Operations
a.
b.
c.
d.