3) March 25: Record the entry to reflecting the receipt of the $450 owed by J....

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3) March 25: Record the entry to reflecting the receipt of the $450 owed by J. Kyle. This entry involves two steps. First, reinstate the account (e. reverse the write-off entry). Second, record the cash payment. Cash (36) 450 Accounts Receivable Allowance for Doubtful Accounts Uncollectible Accounts Expense 88,000 Bal 700 (2) 450 (2) 210 Bal 6,078 (1) (1) 6,078 1,000 (2) (2) 2,150 6,288 Bal (3a) 450 450 (36) 450 (3) 4,588 Bal NOTE: When making the entry for step #2, the debit (in this case for all three uncollectible accounts) goes to the Allowance for Doubtful Accounts. The Uncollectible Accounts Expense account was debited (increased) earlier then the allowance was established. EXERCISE TWO: Complete the following problem using the provided t-accounts. If you get stuck, review the completed example above once again. Roduk Inc. uses the Allowance method for accounting for uncollectible receivables. (a) Record the adjusting entry at December 31, the end of the fiscal year, to estimate for doubtful accounts. The accounts receivable account has a balance of $200,000, and the Allowance for Doubtful Accounts before adjustment has a credit balance of $4,200. Analysis of an aging of receivables estimates doubtful accounts of $8,000 at 12/31. (b) In April of the following fiscal year, $700 owed by Kathy Jones on account is written off as uncollectible. (c) A few weeks later, Kathy pays the $700 balance. Cash Accounts Receivable TT Allowance for Doubtful Accounts Uncollectible Accounts Expense Bal S Bal S 3) March 25: Record the entry to reflecting the receipt of the $450 owed by J. Kyle. This entry involves two steps. First, reinstate the account (e. reverse the write-off entry). Second, record the cash payment. Cash (36) 450 Accounts Receivable Allowance for Doubtful Accounts Uncollectible Accounts Expense 88,000 Bal 700 (2) 450 (2) 210 Bal 6,078 (1) (1) 6,078 1,000 (2) (2) 2,150 6,288 Bal (3a) 450 450 (36) 450 (3) 4,588 Bal NOTE: When making the entry for step #2, the debit (in this case for all three uncollectible accounts) goes to the Allowance for Doubtful Accounts. The Uncollectible Accounts Expense account was debited (increased) earlier then the allowance was established. EXERCISE TWO: Complete the following problem using the provided t-accounts. If you get stuck, review the completed example above once again. Roduk Inc. uses the Allowance method for accounting for uncollectible receivables. (a) Record the adjusting entry at December 31, the end of the fiscal year, to estimate for doubtful accounts. The accounts receivable account has a balance of $200,000, and the Allowance for Doubtful Accounts before adjustment has a credit balance of $4,200. Analysis of an aging of receivables estimates doubtful accounts of $8,000 at 12/31. (b) In April of the following fiscal year, $700 owed by Kathy Jones on account is written off as uncollectible. (c) A few weeks later, Kathy pays the $700 balance. Cash Accounts Receivable TT Allowance for Doubtful Accounts Uncollectible Accounts Expense Bal S Bal S