7 HW eBook Allowance Method for Accounting for Bad Debts At the beginning of 2016, R2 Tech Company Accounts Receivable balance was $224,000, and the balance in Allowance for Doubtful Accounts was $3,800 (Cr.). EZ Tech's sales in 2016 were $1,600,000, 80% of which were on Credit Collections on account during the year were $1,000,000. The company wrote off $5,000 of uncollectible accounts during the year. Required: 1. Prepare summary journal entry related to the (a) sale during 2016. Indicate the effect on financial statement items by selecting -* for decrease (or negative effect), e for increase (e peative efect) and we for No Entry (or no effect on the financial statement. Journal Balance Sheet Income Statement Stockholders Equity Net Incom Description Debit Credit Assets Liabilities + Revenues Expenses (a) Free seural entry related to the b) collections during 2016, Journal Balance Sheet Encome Statement Net Stockholders Equity Liabilities Credit Revenues Inco Assets Description Expenses Debit (b) Previous Na Cry Work Ch.7 HW ebook Prepare summary journal entry related to the write-offs of accounts receivable during 2016, Journal Balance Sheet Income Statement Net Description Debit Credit Stockholders Equity Assets Labilities Revenues Expenses Income (c) 2a. Prepare the journal entry to recognize bad debts assuming that bad debts expense is 25 of credit sales indicate the effect on financial statement items by selecting for decrease for nepative effects, for increase (or positive effect) and "Ne" for No Entry(or no effect on the financial statement Journal Balance Sheet Income statement Stockholders' Description Debit Credit Assets Liabilities Equity Expenses Income (al Net Revenues Income Statement Net 2b. Prepare the journal entry to recognize bad debts assuming that amounts expected to be uncolectare of the year and accounts receivable Journal Balance Sheet Stockholders Description Debit Credit Assets Liabilities Equity Revenues (b) Expenses Income Previous Ned Check My Work Equity Revenues Expenses Incor 2b. Prepare the journal entry to recognize bad debts assuming that amounts expected to be uncollectible e 5% of the year and accounts receivable Journal Balance Sheet Stockholders Description Debit Credit Labilities Equity Revenues Income Statement Net Expenses Income (b) 3. What is the net realizable value of accounts receivable on December 31, 2016, under each assumption in part (2) Using the percentage of sales approach, the trealable value of the receivables is? Using the centage of year-end receivables proach, the net reakable of the receivables is? the realizate value by the amount recorded in bad debts expense and the The of accounts 4. The recognition of bad debts expense the net realizable value Previous Nest Check My Work Submission for Grading All Assignment Score: 2016