Response to the following problem:
Milner Corp. uses the allowance method to account for uncollectibles. On October 31, it wrote off a $1,000 account of a customer, C. Schaub. On December 9, it receives a $200 payment from Schaub.
1. Prepare the journal entry or entries for October 31.
2. Prepare the journal entry or entries for December 9; assume no additional money is expected from Schaub.
3. Explain the accounting constraint of materiality.