Percentage of Year-EndPercentAge GroupReceivables in GroupUncollectible060 days60%3%6190 days10591120 days2025Over 120 days1045
rome File Edit View History Bookmarks P People Window Help 62% Tue 9:56 AM Joalis Valdez Q QE Chapter 07 Pre-Built Problems * *Homework Help - Q&A from Onl x C Lonergan Company Occasionally * | + C A newconnect.mheducation.com/flow/connect.html Chapter 07 Pre-Built Problems i Saved Help Save & Exit Submit 7 Check my work 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: 10 Receivables, net of allowance for uncollectible accounts of $40,090 $ 482,000 points During 2021, credit sales were $1,800,000, cash collections from customers $1,880,000, and $45,000 in accounts receivable were eBook written off. In addition, $4,000 was collected from a customer whose account was written off in 2020. An aging of accounts receivable Print at December 31, 2021, reveals the following: References Percentage of Year-End Percent Age Group Receivables in Group Uncollectible 0-60 days 608 38 61-90 days 10 91-120 days 20 25 over 120 days 10 45 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 2% of credit sales for the year. . 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 estimated to be 10% of the year-end balance in accounts receivable, Graw Hill 22 atv 4 13 JOB F4 4 FT un 8 P Q W E R Ome File Edit View History Bookmarks People Window Help 62% ) Tue 9:56 AM Joalis Valdez Q. O Chapter 07 Pre-Built Problems * * Homework Help - Q&A from Onl x | C) Lonergan Company Occasionally * |+ newconnect.mheducation.com/flow/connect.html Chapter 07 Pre-Built Problems @ Saved Help Save & Exit Submit 7 Check my work Age Group 0-60 days Receivables in Group 608 Uncollectible 61-90 days 10 91-120 days 5 20 over 120 days 10 25 45 10 points Required: I. Prepare summary journal entries to account for the 2021 write-offs and the collection of the receivable previously written off. cBook 2. Prepare the year-end adjusting entry for bad debts according to each of the following situations: Print a. Bad debt expense is estimated to be 2% of credit sales for the year. b. Bad debt expense is estimated by adjusting the allowance for uncollectible accounts to the balance that reduces the carrying References 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Grav
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