Exercise $5-6$A $($Algo$)$ Effect of recovering a receivable previously written off LO $5-1\backslash$table$[[$RENUE SPA$],[$Horizontal Statements Model$],[$Event$,$Assets,$=,$Liabilities,$+,\backslash$table$[[$Equity$],[$Retained$],[$Earnings$]],\backslash$table$[[$Accounts Titles for Retained$],[$Earnings$]]],[$Cash$,+,\backslash$table$[[$NRV Accounts$],[$Receivable$]]],[$Bal$.,,+,79,000,=,,+,79,000,],[1.,,+,,=,,+,(2,920),$Uncollectible accounts expense$],[2$a$.,,+,,=,,+,],[2$b$.,,+,,=,,+,,],[3.,,+,,=,,+,,],[4.,,+,,=,,+,,\backslash$table$[[$Accounts Receivable$],[$Revenue$],[$Salaries expense$],[$Uncollectible accounts expense$]]],[5.,,+,,=,,+,],[$Bal$.,0,+,79,000,=,0,+,76,080],[,,,,$Rec A$]]$

The accounts receivable balance for Renue Spa at December $31,$ Year $1,$ was $$82,000.$ Also on that date, the balance in the Allowance

for Doubtful Accounts was $$3,000.$ Total retained earnings at the end of Year $1$ was $$79,000.$ During Year $2,$ $$1,900$ of accounts

receivable were written off as uncollectible. In addition, Renue unexpectedly collected $$120$ of receivables that had been written off in

a previous accounting period. Services provided on account during Year $2$ were $$214,000,$ and cash collections from receivables were

$$215,963.$ Uncollectible accounts expense was estimated to be $1$ 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$)$:

$(1)$ Balance of Allowance for Doubtful Accounts at December $31,$ Year $2.$

$(2)$ Balance of Accounts Receivable at December $31,$ Year $2.$

$(3)$ Net realizable value of Accounts Receivable at December $31,$ Year $2.$

c$.$ What amount of uncollectible accounts expense will Renue Spa record for Year $2?$

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Req $B$ and $C$

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. Not all cells will require entry.$)$