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Exercise 7-6A (Algo) Effect of recovering A receivable previously written off LO 7-1 Renue Spa had the following balances at December 31, Year 2: Cash

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Exercise 7-6A (Algo) Effect of recovering A receivable previously written off LO 7-1 Renue Spa had the following balances at December 31, Year 2: Cash of $18,000, Accounts Receivable of $90,000, Doubtful Accounts of $3,000, and Retained Earnings of $105,000. During Year 3, the following events occurred: 1. $2,200 of accounts receivable were written off as uncollectible. 2. Renue unexpectedly collected $150 of receivables that had been written off in a previous accounting period. 3. Services provided on account during Year 3 were $223,000. 4. Cash collections from receivables were $225,046. 5. Uncollectible accounts expense was estimated to be 1 percent of the sales on account for the period. Required a. Organize the transaction data 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 3. (2) Balance of Accounts Receivable at December 31, Year 3. (3) Net realizable value of Accounts Receivable at December 31, Year 3. c. What amount of uncollectible accounts expense will Renue Spa have for Year 3? HEY Rey bana i Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sig Not all cells require input.) Event RENUE SPA Accounting Equation Liabilities Equity Retained Earnings 105,000 Assets NRV Accounts Recolvable 87.000 Cash Account Titles for Retained Earnings Bal 18,000 1. + + 2a. + + 150 + + 2b. 3. + + 223,000 Revenue OOOO 225,046 + (150) 223,000 (225,046) (2.230) 82,574 4. 5. + + + Uncollectible accounts expense (2.230) 325,770 Bal. 243.196 + 0 + * Rega Reg B and C > Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does nom Complete this question by entering your answers in the tabs below. Req A Req B and C Based on the preceding information, compute (after year-end adjustment): (1) Balance of Allowance for Doubtful Accounts at December 31, Year 3. (2) Balance of Accounts Receivable at December 31, Year 3. (3) Net realizable value of Accounts Receivable at December 31, Year 3. What amount of uncollectible accounts expense will Renue Spa have for Year 3? Show less b(1) b(2) b(3) c. Allowance for doubtful accounts Accounts receivable Net realizable value Uncollectible accounts expense $ 2,230

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