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Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question The accounts receivable balance for Renue Spa at December 31, Year 1, was $61.000. Also on that date, the balance in the Allowance for Doubtful Accounts was $3,750. Total retained earnings at the end of Year 1 was $57,250. During Year 2. $2,100 of accounts receivable were written off as uncollectible. In addition, Renue unexpectedly collected $500 of receivables that had been written off in a previous accounting period Services provided on account curing Year 2 were $215,000, and cash collections from receivables were $218,000 Uncollectible accounts expense was estimated to be 2 percent of the sales on account for the period. Required a. Organize the information in accounts under an accounting equation. b. Based on the preceding information, compute (after year-end adjustment) 1. (1) Balance of Allowance for Doubtful Accounts at December 31, Year 2. 2. (2) Balance of Accounts Receivable at December 31, Year 2. 3. (3) Net realizable value of Accounts Receivable at December 31, Year 2. c. What amount of uncollectible accounts expense will Renue Spa record for Year 2? Answer is not complete. 2 + Organize the information in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. If there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank.) RENUE SPA Horizontal Statements Model Assets Equity Event NRV Accounts Titles for Retained Liabilities Cash Accounts Retained Earnings Receivable Earings Bal 15,000 61,000 - 3,750 72.250 0 (2.100) (2.100) 0 500 500 - (500) 0 215,000 0 215,000 Revenue 218,000 (218,000) (4,300) Uncollectible accounts expense Bal 233,500 55,900 2.150 282,950 + 0 + 0 . 0 500 + > > + +

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