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Exercise 7-6A (Static) Effect of recovering a receivable previously written off LO 7.1 The accounts recelvable balance for Renue Spa at December 31, Year 1,

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Exercise 7-6A (Static) Effect of recovering a receivable previously written off LO 7.1 The accounts recelvable balance for Renue Spa at December 31, Year 1, was $61,000. Also on that date, the balance in the Allowance for Doubtful Accounts was $3,750. During Year 2,$2,100 of accounts recelvable were written off as uncollectible. In addition, Renue unexpectedly collected $500 of recelvables that had been written off in a previous accounting period. Services provided on account. during Yer 2 were $215,000, and cash collections from recelvables-were $218,000. Uncollectible accounts expense was estimated to be 2 perdent of the sales on account for the period. Required a. Record the transactions in general joumal form and post to T-accounts. b. Based on the preceding information, compute (after year-end adjustment): (7) Balance of allowance for doubtful accounts at December 31, Year 2. (2) Balance of accounts recelvable at December 31, Year 2. (3) Net realizable value of accounts recelvable at December 31, Year 2. c. What amount of uncollectible accounts expense will Renue report for Year 2? Complete this question by entering your answers in the tabs below. Record the transactions in general joumal form. (If no entry is required for a transaction/event, select "No joumal entry required" in the first account field.) Complete this question by entering your answers in the tabs below. Post the transactions to T-accounts. 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 recelvable at December 31 , Year 2 . What amount of uncollectible accounts expense will Renue report for Year 2

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