Exercise 7-6B Effect of recovering a recenable previously written off Edd's Shoe Repair had the following balances at December 31, Year 1: Cash of $22,000, Accounts Receivable of $76,000, Allowance for Doubtful Accounts of $3,200, and Retained Earnings of $94,800. During Year 2,\$2,900 of accounts receivable were written off as uncollectible. In addition, Edd's Shoe Repair unexpectedly collected $200 of receivables that had been written off in a previous accounting period. Sales on account during Year 2 were $210,000, and cash collections from receivables were $215,000. Uncollectible accounts expense was estimated to be 1 percent of the sales on account for the period. Required a. Organize the information in accounts under an accounting equation. b. Based on the preceding information, compute (after yearend 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 Receivable at December 31, Year 2. c. What amount of uncollectible accounts expense will Edd's Shoe Repair report for Year 2? d. Explain how the $200 recovery of receivables affected the accounting equation. b. (1) Allowance for Doubtful Accounts, 12/31/Year 2: (2) Accounts Receivable, 12/31/Year 2: (3) Net Realizable Value: c. Uncollectible Accounts Expense Year 2: d. The recovery of previously written off accounts will cause the accounting equation to change in the following ways