7-4 (Algo) Uncollectible accounts; financial statement effects [LO7-5, 7-6] Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company's fiscal year-end The 2023 balance sheet disclosed the following Current assets: Receivables, net of allowance for uncollectible accounts of 139,000 $477,000 During 2024, credit sales were $1,795,000, cash collections from customers $1,875,000, and $44,000 in accounts receivable were written off. In addition, $3,900 was collected from a customer whose account was written off in 2023 An aging of accounts receivable at December 31, 2024, reveals the following Age Group 0-60 days ces 91-120 days Percentage of Year-End Receivables in Group 70% 20 Sonn Percent Uncollectible 5% 6229 15 20 61-90 days Over 120 days Required: 40 1. Prepare summary journal entries to account for the 2024 write-offs and the collection of the receivable previously written off 2. Prepare the year-end adjusting entry for bad debts according to each of the following situations a. Bad debt expense is estimated to be 4% of credit sales for the year b. Bad debt expense is estimated by adjusting the allowance for uncollectible accounts to the balance that reduces the carrying value of accounts receivable to the amount of cash expected to be collected The allowance for uncollectible accounts is estimated to be 10% of the year-end balance in accounts receivable c. Bad debt expense is estimated by adjusting the allowance for uncollectible accounts to the balance that reduces the carrying value of accounts receivable to the amount of cash expected to be collected the allowance for uncollectible accounts is determined by an aging of accounts receivable 3. For utuations (a)-(e) in requirement 2 above, what would be the net amount of accounts receivable reported in the 2024 balance sheet Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Prepare the year-end adjusting entry for bad debts according to each of the following situations sheet? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the year-end adjusting entry for bad debts according to each of the following situations a. Bad debt expense is estimated to be 4% of credit sales for the year. b. Bad debt expense is estimated by adjusting the allowance for uncollectible accounts to the balance that reduces the carrying value of accounts receivable to the amount of cash expected to be collected. The allowance for uncollectible accounts is estimated to be 10% of the year-end balance in accounts receivable.. c. Bad debt expense is estimated by adjusting the allowance for uncollectible accounts to the balance that reduces the carrying value of accounts receivable to the amount of cash expected to be collected. The allowance for uncollectible accounts is determined by an aging of accounts receivable. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No 1 Transaction General Journal Bad debt expense Allowance for uncollectible accounts 2 b: Bad debt expense Allowance for uncollectible accounts Show less A Debit 71,800 Credit 71.800 350,000 358 000 Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 31 For situations (a)-(c) in requirement 2 above, what would be the net amount of accounts receivable reported in the 2024 balance sheet? Net accounts receivable reported