AutoSave OFF BESU- B-07.04Student Home Insert Draw Page Layout Formulas Data Review View Tell me Share 0 Comments Calibri (Body) 10 ~ AI = = ab Wrap Text General --- AY O Paste B I U Av Merge & Center -28 Insert $ %) Delete Format Ideas Conditional Format Formatting as Table Cell Styles Sort & Filter Find & Select Open recovered workbooks? Your recent changes were saved. Do you want to continue working where you left off? Yes No D3 C D E F G H K L A B Pablo's Precision Parts distributes carbon fiber parts for customization of sports cars. The company has a broad customer base, and routinely sells on credit. Annually, the company reviews and updates its allowance for uncollectible accounts. Periodic write-offs against the allowance account are made throughout the year when individual accounts are deemed to be worthless. Following are relevant facts for the current year: Prior to recording any year-end adjustments, the total balance of all accounts receivable amounted to $2,300,000. The existing Allowance for Uncollectible Accounts had a balance of $18,000. No entry was made during the year to increase this account, but $40,000 of uncollectible accounts were written off against the allowance during the year. 2 (a) What was the beginning-of-year balance for the Allowance for Uncollectible Accounts? 3 (b) Prepare a summary journal entry that reflects the $40,000 of write-offs already recorded by Pablo's. 4 (c) Assuming that the year-end allowance should equal 3% of outstanding receivables, what end-of-year adjusting entry is needed? 5 (d) How will the accounts receivable and allowance appear on the balance sheet? 6 (e) How much expense will appear in the annual income statement as uncollectible accounts expense? 7 8 9 10 11 12 13 14 Problem Worksheet + Ready P 139%