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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 $15,000, Accounts Receivable of $86,000, Allowance for Doubtful Accounts of $2,600, and Retained Earnings of $98,400. During Year 3, the following events occurred: 1. $2,700 of accounts receivable were written off as uncollectible. 2. Renue unexpectedly collected $190 of receivables that had been written off in a previous accounting perlod. 3. Services provided on account during Year 3 were $216,000 4. Cash collections from receivables were $217,982 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 wilt Renue Spa have for Year 3? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Red A Reg 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 require input.) RENUE SPA Accounting Equation Assets Liabilities Equity Event Cash NRV Accounts Retained Account Titles for Retained Eamingo Receivable Earnings Bal 1 20 2b. 3. 4 5 Bal 0+ 0 0 0 Road Reg Band > 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) Allowance for doubtful accounts [2) Accounts receivable D(3) Net realizable value C Uncollectible accounts expense Complete this question by entering your answers in the tabs below. Required A Required B Assume that Joey's Bike Shop uses the direct write-off method of accounting for uncollectible accounts. Answer the following (1) What is the Accounts Receivable balance at December 31, Year 1? (2) What is the amount of uncollectible accounts expense for Year 1? (3) What is the net realizable value of accounts receivable at December 31, Year 1? Show less (1) Accounts receivable (2) Uncollectible accounts expense (3) Net realizable value