Question: On December 31, 2009, when its Allowance for Doubtful Accounts had a debit balance of $1,000, Brite Star Co. estimates that 9% of its accounts

On December 31, 2009, when its Allowance for Doubtful Accounts had a debit balance of $1,000, Brite Star Co. estimates that 9% of its accounts receivable balance of $90,000 will become uncollectible and records the necessary adjustment to the Allowance for Doubtful Accounts. On May 11, 2010, Brite Star Co. determined that J. Reno’s account was uncollectible and wrote off $1,500. On June 12, 2010, Reno paid the amount previously written off.

Instructions

Prepare the journal entries on December 31, 2009, May 11, 2010, and June 12, 2010.

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