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Colorado Rocky Cookie Company offers credit terms to its customers. At the end of 2018, accounts receivable totaled $715,000. The allowance method is used to

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Colorado Rocky Cookie Company offers credit terms to its customers. At the end of 2018, accounts receivable totaled $715,000. The allowance method is used to account for uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $50,000 at the beginning of 2018 and $30,000 in receivables were written off during the year as uncollectible. Also, $3,000 in cash was received in December from a customer whose account previously had been written off. The company estimates bad debts by applying a percentage of 15% to accounts receivable at the end of the year. Required: 1. Prepare journal entries to record the write-off of receivables, the collection of $3,000 for previously written off receivables, and the year-end adjusting entry for bad debt expense. 2. How would accounts receivable be shown in the 2018 year-end balance sheet? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries to record the write-off of receivables, the collection of $3,000 for previously written off receivables, and the year. end adjusting entry for bad debt expense. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet View transaction list Journal entry worksheet 1 2 3 4 Record the reinstatement of an account previously written off. Note: Enter debits before credits. Event General Journal Debit Credit 2 No journal entry required Accounts payable Accounts receivable Accrued interest receivable Record View general journal Journal entry worksheet Record collection of account previously written off. Note: Enter debits before credits. Event General Journal Debit Credit 3 Record entry Clear entry View general journal

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