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Awesome Signs Company uses the allowance method in accounting for uncollectible accounts. Past experience indicates that 10% of accounts receivable will eventually be uncollectible.

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Awesome Signs Company uses the allowance method in accounting for uncollectible accounts. Past experience indicates that 10% of accounts receivable will eventually be uncollectible. Selected account balances at December 31, 2021, and December 31, 2022, appear below. Net Credit Sales Accounts Receivable Allowance for Doubtful Accounts 12/31/21 $600,000 95,000 12/31/22 $900,000 120,000 9,500 Instructions (a) Record the following events in 2022. Determined that the account of Jane Jones for $2,000 is uncollectible. Aug. 10 Account Bad Debt Expense Allowance for Doubtful accounts Sept. 12 Account Oct. 10 Account DR 2000 CR 2000 Determined that the account of Sammy Hari for $5,500 is uncollectible DR CR Received a check for $2,000 as payment on account from Jane Jones, whose account had previously been written off as uncollectible. DR CR (b) Prepare the adjusting journal entry to record the bad debt provision for the year ended December 31, 2022. (Hint: You might need to first determine the ending "unadjusted" balance in the allowance for doubtful accounts before figuring out what to adjust it by.) + Account DR CR (c) What is the balance of Allowance for Doubtful Accounts at December 31, 2022 (after the adjusting entry)? (d) What is the net cash realizable value of Accounts Receivable at December 31,2022?

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