Exercise 5-22A Complete the accounting cycle using receivable transactions (LO51, 52, 54, 55, 57)

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The general ledger of Pop's Fireworks includes the following account balances in 2021:

Accounts	Debit				Credit
Cash	$	21,200
Accounts Receivable		41,500
Allowance for Uncollectible Accounts					$	2,200
Supplies		6,700
Notes Receivable (8%, due in 2 years)		10,000
Land		85,000
Accounts Payable						12,300
Common Stock						106,000
Retained Earnings						29,900
Service Revenue						124,800
Salaries Expense		70,900
Utilities Expense		24,200
Supplies Expense		15,700
Totals	$	275,200			$	275,200

In addition, the following transactions occurred during 2021 and are not yet reflected in the account balances above:

June		3		Provide additional services on account for $7,000. All services on account include terms 2/10, n/30.
June		8		Receive cash from customers within 10 days of the services being provided on account. The customers were originally charged $5,000.
November		15		Write off customer accounts of $1,500 as uncollectible.

Exercise 5-22A Part 3

3. Prepare an adjusted trial balance as of December 31, 2021.

4. Prepare an income statement for the period ended December 31, 2021. (Amounts to be deducted should be indicated with a minus sign.)

5. Prepare a classified balance sheet as of December 31, 2021. (Amounts to be deducted should be indicated with a minus sign.) 6. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Exercise 5-22A Part 7

7. Analyze the following information:

By how much does the year-end estimate of future uncollectible accounts reduce net income in 2021?

What is the ending balance of Allowance for Uncollectible Accounts?

What amount of cash is expected to be collected from accounts receivable?