Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please fill in all of the boxes for requiremnt a and req b and c. please explain how u got your numbers 4 1 points

please fill in all of the boxes for requiremnt a and req b and c. please explain how u got your numbers image text in transcribed
image text in transcribed
image text in transcribed
4 1 points Problem: Module 2 Textbook Problem 4 Learning Objective: 2-2 Use the percent of revenue method to account for uncollectible accounts expense The accounts receivable balance for Renue Spa at December 31, Yeart, was $90,000. Also on that date, the balance in the Allowance for Doubtful Accounts was $2,900. Total retained earnings at the end of Year 1 was $87,100. During Year 2, $2,100 of accounts receivable were written off as uncollectible. In addition, Renue unexpectedly collected $130 of receivables that had been written off in a previous accounting period. Services provided on account during Year 2 were $221,000, and cash collections from receivables were $223,028. Uncollectible accounts expense was estimated to be 1 percent of the sales on account for the period. Required a. Organize the information in accounts under an accounting equation b. Based on the preceding information, compute (after year end adjustment): 1. (1) Balance of Allowance for Doubtful Accounts at December 31, Year 2. 2. (2) Balance of Accounts Receivable at December 31. Year 2 3. (3) Net realizable value of Accounts Receivable at December 31, Year 2 c. What amount of uncollectible accounts expense will Renue Spa record for Year 2? Complete this question by entering your answers in the tabs below. Req A Req B and C Organize the information in accounts under an accounting equation. (Enter any decreases to account balance there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank. Not all cells will require er RENUE SPA Horizontal Statements Model Equity Liabilities Retained Earnings Event Assets NRV Accounts Receivable 87,100 Cash Accounts Titles for Retained Earnings Bal. 1. 2a. 2b. + + + + + + + + 3. 11 III III 4. + + 5. Bal 87,100 01 + 0 Req A Req B and C Based on the preceding information, compute (after year-end adju (1) Balance of Allowance for Doubtful Accounts at December 31, Y (2) Balance of Accounts Receivable at December 31, Year 2. (3) Net realizable value of Accounts Receivable at December 31, Y What amount of uncollectible accounts expense will Renue Spa rece b-1. Allowance for doubtful accounts b-2. Accounts receivable b-3. Net realizable value C. Uncollectible accounts expense

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

An Audit Of Police Oversight In Africa

Authors: African Police Oversight Forum

1st Edition

1920299173, 978-1920299170

More Books

Students also viewed these Accounting questions

Question

Show that with the change of variables u = tan x, the integral

Answered: 1 week ago

Question

Identify cultural barriers to communication.

Answered: 1 week ago