Check my work 3 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 2020 balance sheet disclosed the following: 4 points Current assets: Receivables, net of allowance for uncollectible accounts of $30,000 5432,000 During 2021, credit sales were $1,750,000 cash collections from customers $1,830,000 and $35,000 in accounts receivable were written off. In addition, $3,000 was collected from a customer whose account was written off in 2020. An aging of accounts receivable at December 31, 2021, reveals the following: Percentage of Year End Percent Age Group Receivables in Group 0-60 days Uncollectible 61-90 days 20 15 91-120 days Over 120 days 5 40 Required: 1. Prepare summary journal entries to account for the 2021 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 3 of credit cache Check my work 3 4 points Required: 1. Prepare summary journal entries to account for the 2021 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 3% 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 situations (a)-(c) in requirement 2 above, what would be the net amount of accounts receivable reported in the 2021 balance sheet? cock Pent rence Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required For situations (a)-(c) in requirement 2 above, what would be the net amount of accounts receivable reported in the 2021 balance sheet? ME 3 sheet? Complete this question by entering your answers in the tabs below. 4 points Required 1 Required 2 Required 3 eBook For situations (a)-(c) in requirement 2 above, what would be the net amount of accounts receivable reporte balance sheet? Print References Net account receivable reported a b. 0 O 3 Journal entry worksheet 4 points Bad debt expense is estimated by computing net realizable value of the receivables. The allowance for uncollectible accounts is estimated to be 10% of the year-end balance in accounts receivable. eBook Print Note: Enter debits before credits References Credit Transaction General Journal b Bad debt expenso Allowance for uncollectible accounts Debit 36,700 36,700 Record entry Clear entry View general Journal MC 3 Journal entry worksheet Check my word 4 points Bad debt expense is estimated by computing net realizable value of the receivables. The allowance for uncollectible accounts is determined by an aging of accounts receivable. Book Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general Journal ME G Check my 3 Journal entry worksheet 1 > 4 points Record accounts receivable written off during the year 2021 Book Print Note: Enter debts before credits Roforences Event Debit Credit 1 General Journal Allowance for uncollectible accounts Accounts receivable 35,000 35,000 Record entry Clear entry View general Journal Me G HA Type here to search ENG Check my work 3 Journal entry worksheet 4 points Record entry to reinstate an account receivable previously written off. Notar Enter debits before credits Event 2 Debit Credit General Journal Accounts receivable Allowance for collectible accounts 3,000 3,000 Macord any Clew entry View general journal Check my work 3 Journal entry worksheet 2 4 points Record collection of an account receivable previously written off. Print Note: Enter debts before credits Event 3 Credit General Journal (Cash Accounts receivable Debit 3,000 3.000 Record entry Clear entry View general Journal
