Question Seven: (6 points)

Elder Company uses the allowance method for estimating uncollectible accounts.

January 5 Sold merchandise to Mary Cerner for $1,000, terms n/15.

April 15 Received $200 from Mary Cerner on account.

August 21 Wrote off as uncollectible the balance of the Mary Cerner account when she declared bankruptcy.

October 5 Unexpectedly received a cash for $250 from Mary Cerner (that previously written off).

Required:

Prepare journal entries to record the following above transactions.