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I need A, B, and C. Thank you very much Question 1: On December 31, 2021, the unadjusted trial balance of Pearce Services showed the
I need A, B, and C.
Thank you very much
Question 1: On December 31, 2021, the unadjusted trial balance of Pearce Services showed the following balances (all in their normal balance): Accounts receivable Allowance for doubtful accounts Sales (75% were on credit) $400,000 8,000 1,000,000 The business has given up trying to collect $5,000 of its accounts receivable but has not yet recorded the write-off entry. Required: a) Provide the entry for the write-off. (2 marks) b) Assume the business uses the Percentage of Accounts Receivable allowance method for estimating uncollectible amounts. After recording the $5,000 of write-offs, the business has determined that 18% of its remaining accounts receivable are estimated to be uncollectible. Provide the entry to record bad- debt expense at the December 31, 2021 year-end. (3 marks) c) Now (ignoring part b), instead assume the business uses the Percent-of-Sales allowance method for estimating uncollectible amounts, and has experienced an average 6% rate of non-collection based on credit sales, provide the entry to record bad-debt expense at the December 31, 2021 year-endStep by Step Solution
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