Exercise 7-6A Effect of recovering a receivable previously written off LO 7-1 Renue Spa had the following balances at December 31, Year 1: Cash of $10,000, Accounts Receivable of $82,000, Allowance for Doubtful Accounts of $2,800, and Retained Earnings of $89,200. During Year 3, $2,700 of accounts receivable were written off as uncollectible. In addition, Renue unexpectedly collected $160 of receivables that had been written off in a previous accounting period. Services provided on account during Year 3 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 transaction data in accounts under an accounting equation. b. Based on the preceding information, compute (after year-end adjustment): 1. (1) Balance of Allowance for Doubtful Accounts at December 31, Year 3. 2. (2) Balance of Accounts Receivable at December 31, Year 3. 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? Complete this question by entering your answers in the tabs below. Reg A Req B and C Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. Not all cells in the "Accounts Titles for Retained Earnings" column may require an input - leave cells blank if there is no corresponding Retained Earnings input needed.) RENUE SPA Horizontal Statements Model Equity Liabilities Retained Allowance Earnings Assets Accounts Receivable Event Accounts Titles for Retained Earnings Cash + Bal 1 Complete this question by entering your answers in the tabs below. Req A Req B and C Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. Not all cells in the "Accounts Titles for Retained Earnings" column may require an input - leave cells blank if there is no corresponding Retained Earnings input needed.) RENUE SPA Horizontal Statements Model Equity Liabilities Allowance Retained Earnings Assets Accounts Receivable Event + Accounts Titles for Retained Earnings Cash Bal. 1. + 2a. 2b 3. 4. 5 Bal. c. What amount of uncollectible accounts expense will Renue Spa have for Year 3? 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 for Year 3? Show less b-1. Allowance for doubtful accounts b-2. Accounts receivable b-3. Net realizable value C. Uncollectible accounts expense
