Colorado Rocky Cookie Company offers credit terms to its customers. At the end of 2021, 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 2021 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 2021 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" the first account field.) View transaction list 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.) No General Journal Debit Credit Event 1 Allowance for uncollectible accounts 30,000 Accounts receivable 30,000 2 Accounts receivable 3,000 Allowance for uncollectible accounts 3,000 3 Cash 3,000 Accounts receivable 3,000 4 Bad debt expense 84,250 Allowance for uncollectible accounts 84,250 1 2 3 4 Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 How would accounts receivable be shown in the 2021 year-end balance sheet? Balance Sheet (Partial) Current Assets Accounts receivable (net)
