Allowance for Doubtful Accounts On January 1, 2020, Valley Landscape Supply, Inc. had a beginning balance in Accounts Receivable of $28,700 Debit, and a beginning balance in the Allowance for Uncollectible Accounts of $980 Credit. During the year, the company reported (a) $131,000 of credit sales and (b) $42,000 of Cash Sales. During 2020, cash collections of receivables amounted to (c) $91,400 and (d) $505 of customer receivables were written off as uncollectible.

1a. Post the above data to the T-Accounts (hint - think about the journal entries!): Allowance for Cash Accounts Receivable Uncollectible Accounts Sales Bad Debt Expense Using the information above, please do the following: 1b. Valley Landscape estimates that its bad debts will be equal to 32% of its annual credit sales. Write the adjusting journal entry to update the Valley Landscape Allowance account at year-end. 1c. Below, determine the balance in the allowance account at 12/31/2020, using this allowance method. Allowance for Uncollectible Accounts