OPPOSITE Wonderland Landscaping Services started the year 2020 with an Accounts Receivable balance of $16,400 and an Allowance for Doubtful Accounts balance of $5, 100. During the year, 55,800 of accounts receivable were identified as uncollectible Sales revenue for 2020 was $457 000, including credit sales of $440,000 Cash collections on account were $417,000 during the year. The aging of accounts receivable yields these data (Click the icon to view the data.) You're the accountant preparing the December 31, 2020, year-end entries Required Requirement 1. Journalize Wonderland's (a) credit sales, (b) cash collections on account, (c) write-off of the accounts receivable identified as uncollectible, and (d) bad debt expense based on 1 percent of credit sales Start by entering the journal entry for the credit sales recorded in 2020 (Record debits first, then credits. Exclude explanations from Journal entries.) Journal Entry Accounts Debit Credit Next journalize the collections on account Journal Entry Accounts Debit Credit ? Choose from any list or enter any number in the input fields and then continue to the next question Data 0-30 Total Days Age of Accounts 31-60 61-90 Over 90 Days Days Days $7,000 $6,900 $5,700 3 % 4 % 50 % Receivables Amount of receivable $63.600 $44,000 1 % Percent uncollec Print Done year-end entries Required Next, journalize the collections on account. Journal Entry Accounts Debit Credit Now, record the entry to journalize the write-offs of uncollectibles Journal Entry Accounts Debit Credit Choose from any list or enter any number in the input fields and then continue to the next question Now, journalize the bad debt expense. Journal Entry Accounts Debit Credit Requirement 2. Prepare a T-account for the Accounts Receivable and Allowance for Doubtful Accounts ac In the following T-accounts, enter the adjusting entries in the order recorded in the preceding steps. Calcule Choose from any list or enter any number in the input fields and then continue to the next question. Wonderland Landscaping Services started the year 2020 with an Accounts Receivable balance of $46,400 and an Allowance for Doubtful Accounts balance of $5,100. During the year, $5,800 of accounts receivable were identified as uncollectible Sales revenue for 2020 was $457,000, including credit sales of $140,000 Cash collections on account were $417,000 duning the year The aging of accounts receivable yields these data Click the icon to view the data.) You're the accountant preparing the December 31, 2020 year-end entries Required Requirement 2. Prepare a T-account for the Accounts Receivable and Allowance for Doubtful Accounts accounts In the following T-accounts, enter the adjusting entries in the order recorded in the preceding steps. Calculate the balance of each account. (if a box is not used in the T-accounts, leave the box empty, do not enter a zero.) Accounts Receivable Allowance for Doubtful Accounts Bal 46,400 Bal 5,100 to Requirement 3. Calculate the balance in the Allowance for Doubtful Accounts based on the aging-of-accounts receivable method (Round each answer to the nearest whole number.) Age of Accounts Receivable 94 CA 49 . 04 An Choose from any list or enter any number in the input fields and then continue to the next question Requirement 3. Calculate the balance in the Allowance for Doubtful Accounts based on the aging-of-accounts receivable method (Round each answer to the nearest whole number.) Age of Accounts Receivable 1-30 31-60 61-90 Days Days Days Over 90 Total Receivables $5,700 $ 63.600 50 % Days $44,000 1 % Amount of receivable Estimated percent uncollectible $7,000 $6,900 4% 3% Estimated amount uncollectible Requirement 4. Make any adjustment required to the Allowance for Doubtful Accounts based on the calculation in requirement 3 Journal Entry Accounts Debit Credit Choose from any list or enter any number in the input fields and then continue to the next question Requirement 5. Show how Wonderland Landscaping Services should report Accounts Receivable on the balance sheet There are two generally accepted methods to present receivables on the balance sheet. The first method shows the allowance for doubtful accounts amount in the line item description (Choose the account title, enter the allowance for doubtful accounts amount, and then calculate the net accounts receivable amount.) Balance Sheet (Partial): Current assets The second method used to present receivables on the balance sheet shows the allowance for doubtful accounts on a line of its own Balance Sheet (Partial): Accounts receivable net Choose from any list or enter any number in the input fields and then continue to the next