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Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company's fiscal year-end. The 2020 balance sheet disclosed the following: Current assets: Receivables, net of allowance for uncollectible accounts of $50,000 $ 532,000 During 2021, credit sales were $1,850,000, cash collections from customers $1,930,000, and $59,000 in accounts receivable were written off. In addition, $5,000 was collected from a customer whose account was written off in 2020. An aging of accounts receivable at December 31, 2021, reveals the following: Percentage of Year-End Percent Age Group Receivables in Group Uncollectible 0-60 days 656 61-90 days 10 91-120 days Over 120 days 40 15 15 5 . 30 50 Required: 1. Prepare summary Journal entries to account for the 2021 write-offs and the collection of the receivable previously written off 2. Prepare the year-end adjusting entry for bad debts according to each of the following situations: a. Bad debt expense is estimated to be 3% of credit sales for the year. b. Bod debt expense is estimated by adjusting the allowance for uncollectible accounts to the balance that reduces the carrying value of accounts receivable to the amount of cash expected to be collected. The allowance for uncollectible accounts is estimated to be 10% of the year-end balance in accounts receivable. c. Bad debt expense is estimated by adjusting the allowance for uncollectible accounts to the balance that reduces the carrying value of accounts receivable to the amount of cash expected to be collected. The allowance for uncollectible accounts is determined by an aging of accounts receivable. 3. For situations (a)(c) In requirement 2 above, what would be the net amount of accounts receivable reported in the 2021 balance Sheet? CAPELUN VOLUNCLICU. "WOLIUI VICICLUUIC ULLVILI determined by an aging of accounts receivable. 3. For situations (a)-(c) in requirement 2 above, what would be the net amount of accounts receivable reported in the 2021 balance sheet? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the year-end adjusting entry for bad debts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction Debit Credit 1 General Journal Bad debt expense Allowance for uncollectible accounts DO 55,500 55,500 2 b 46,300 3 Bad debt expense Allowance for uncollectible accounts OO 48,300 3 G 51,173 Bad debt expense Allowance for uncollectible accounts O 51.173 Complete this question by enter ng your answers in the tabs below. Required 1 Required 2 Required 3 For situations (a)-(e) in requirement 2 above, what would be the net amount of accounts receivable reported in balance sheet? Net account receivable reported a b. C
