December 5, Elsa Corp. was notified that Anna Ltd. filed for bankcruptcy and herefore decided to write off $3 , 000 owed by Anna. On December 20 , Anna iformed Elsa that $1 , 500 of the amount written off can be recovered and made the ayment to Elsa. How would Elsa record the transaction on December 20? a) 1) Debit Allowance for Doubtful Accounts $3 , 000 and credit Accounts Receivable $3 , 000 . 2) Debit Accounts Receivable $1 , 500 and credit Allowance for Doubtful Accounts $1 , 500 . b) 1) Debit Allowance for Doubtful Accounts $1 , 500 and credit Accounts Receivable $1 , 500 . 2) Debit Accounts Receivable $1 , 500 and credit Allowance for Doubtful Accounts $1 , 500 . c) 1) Debit Accounts Receivable $3 , 000 and credit Allowance for Doubtful Accounts $3 , 000 . 2) Debit Cash $1 , 500 and credit Accounts Receivable $1 , 500 ..

1. December 5, Elsa Corp. was notified that Anna Ltd. filed for bankcruptcy and herefore decided
to write off $3 , 000 owed by Anna. On December 20 , Anna iformed Elsa that $1 , 500 of the
amount written off can be recovered and made the ayment to Elsa. How would Elsa record the
transaction on December 20? a) 1) Debit Allowance for Doubtful Accounts $3 , 000 and credit
Accounts Receivable $3 , 000 . 2) Debit Accounts Receivable $1 , 500 and credit Allowance for
Doubtful Accounts $1 , 500 . b) 1) Debit Allowance for Doubtful Accounts $1 , 500 and credit
Accounts Receivable $1 , 500 . 2) Debit Accounts Receivable $1 , 500 and credit Allowance for
Doubtful Accounts $1 , 500 . c) 1) Debit Accounts Receivable $3 , 000 and credit Allowance for
Doubtful Accounts $3 , 000 . 2) Debit Cash $1 , 500 and credit Accounts Receivable $1 , 500 .