For each transaction listed in E8-4, indicate the amount and direction (+ or −) of effects on the financial statement accounts and on the overall accounting equation. 

Data From E8-4.

Prior to recording the following, E. Perry Electronics, Incorporated, had a credit balance of $2,000 in its Allowance for Doubtful Accounts. 

Required: 

Prepare journal entries for each transaction. 

a. On August 31, 2017, a customer balance for $300 from a prior year was determined to be uncollectable and was written off. 

b. On December 15, 2017, the customer balance for $300 written off on August 31, 2017, was collected in full.

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Assets Liabilities Shareholders' Equity