Answer:
1. Dr Accounts Receivable 9,000
Cr Sales Revenue 9,000
2. Dr Allowance for sales returns and allowances 700
Cr Accounts Receivable 700
3. Dr Allowance for sales returns and allowances 200
Cr Accounts Receivable 200
Explanation:
Preparation of the journal entry
1. Preparation of the entries when Roeher makes the sale
Dr Accounts Receivable 9,000
Cr Sales Revenue 9,000
2. Preparation of the entries when Roeher grants an allowance of the amount of $700
Dr Allowance for sales returns and allowances 700
Cr Accounts Receivable 700
3. Preparation of the entries when Roeher estimated that an additional amount of $200 in allowances will be granted to Elkins
Dr Allowance for sales returns and allowances 200
Cr Accounts Receivable 200
