Renue Spa had the following balances at December 31, Year 1: Cash of $15,000, Accounts Receivable of $61,000, Allowance for Doubtful Accounts of $3,750, and Retained Earnings of $72,250. During Year 3, $2,100 of accounts receivable were written off as uncollectible. In addition, Renue unexpectedly collected $500 of receivables that had been written off in a previous accounting period. Services provided on account during Year 3 were $215,000, and cash collections from receivables were $218,000. Uncollectible accounts expense was estimated to be 2 percent of the sales on account for the period.

Required
a. Organize the information in accounts under an accounting equation.
b. Based on the preceding information, compute (after year-end adjustment):
(1) Balance of Allowance for Doubtful Accounts at December 31, Year 3.
(2) Balance of Accounts Receivable at December 31, Year 3.
(3) Net realizable value of Accounts Receivable at December 31, Year 3.
c. What amount of uncollectible accounts expense will Renue Spa have for Year 3?
d. Explain how the $500 recovery of receivables affected the accounting equation.