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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 $12,000. Accounts Receivable of $83,000, Allowance for Doubtful Accounts of $2,600, and Retained Earnings of $92,400. During Year 3, the following events occurred: 1. $2.000 of accounts receivable were written off as uncollectible. 2. Renue unexpectedly collected $190 of receivables that had been written off in a previous accounting period. 3. Services provided on account during Year 3 were $218,000. 4. Cash collections from recelvables were $220,000 5. Uncollectible accounts expense was estimated to be 1 percent of the sales on account for the period. Required: 1. Organize the transaction data in accounts under an accounting equation. 2. Blased 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. 3. What amount of uncollectible accounts expense will Renue Spa have for Year 3 ? Complete this question by entering your answers in the tabs below. Organize the transaction data in accounts under an accounting equation. Note: Enter any decreases to account balances with a minus sign. Not all celis require input. 3. What amount of uncollectible accounts expense will Renue Spa have for Year 3? Complete this question by entering your answers in the tabs below. Organize the transaction data in accounts under an accounting equation. Note: Enter any decreases to account balances with a minus sign. Not all oulls require input. 2. Based on the preceding information, compute (after year-end adjustment): (1) Balance of Allowance for Doubtul Accounts at December 31, Year 3. (2) Balance of Accounts Recelvable at December 31, Year 3 (3) Net realizable value of Accounts Recelvable at December 31, Year 3. 3. What amount of uncollectible accounts experise will Renue Spa have for Year 3 ? Complete this question by entering your answers in the tabs below. 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 Recelvable at December 31, Year 3 . (3) Net realizable value of Accounts Recelvable at December 31, Year 3. What amount of uncollectible accounts expense will Renue Spa have for Year 3

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