Problem 7-4 (Algo) Uncollectible accounts [LO7-5, 7-6] 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 companys fiscal year-end. The 2020 balance sheet disclosed the following: Current assets: Receivables, net of allowance for uncollectible accounts of $31,000 $ 437,000 During 2021, credit sales were $1,755,000, cash collections from customers $1,835,000, and $36,000 in accounts receivable were written off. In addition, $3,100 was collected from a customer whose account was written off in 2020. 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: Bad debt expense is estimated to be 2% of credit sales for the year. The allowance for uncollectible accounts is estimated to be 10% of the year-end balance in accounts receivable. 3. For situations (a)(b) 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 1Required 2Required 3 For situations (a)(c) in requirement 2 above, what would be the net amount of accounts receivable reported in the 2021 balance sheet?

Net account receivable reported a. b.

7 Problem 7-4 (Algo) Uncollectible accounts (L07-5, 7-6) Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expenses recorded only at December 31. the company's fiscal year-end. The 2020 balance sheet disclosed the following Book Current assets Receivables, net at sllowance for uncollectible accounts of $31,600 5432.00 During 2021 credit sales were $1755 000, cash collections from customers 51 835000, and $95.000 accounts receivable were written off. In addition, $3100 was collected from a customer whose account was written of in 2020, 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 dusting entry for bad debts according to each of the following situation o. Bad debt expense is estimated to be 2 of credit sales for the year b. The lowance for uncollectible accounts is estimated to be 10 of me year end balance in accounts receivable 3. Formation on requirement 2 above, what would be the net ansount of accounts receivable reported in the 2021 balance Wheet Conplete this question by entering your answers in the tabs below. beled Regula umplete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare summary Journal entries to account for the 2021 write-offs and the collection of the receivable previously written off. (It no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Event Credit 1 1 General Journal Allowance for uncollectible accounts Accounts receivable Debit 36,000 stes 36.000 2 2 3.100 Accounts receivable Allowance for uncollectible accounts 3.100 3.100 Cash Accounts receivable 3100 Required 2 > Saved 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. (ir no entry is required for a transactior/event, select "No journal entry required in the first account field.) View transaction list View journal entry worksheet Transaction Credit NO 1 General Journal Bad debt expense Allowance for uncolectible accounts Debit 35.100 35100 37109 Bad debt expenso Allowance for uncollectible accounts 37.100 Otts and the collection of the receivable previously written off ule 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. b. The allowance for uncollectible accounts is estimated to be 10% of the year-end balance in accounts receivable 3. For situations (a)-(b) in requirement 2 above, what would be the net amount of accounts receivable reported in the 2021 balance sheet? -BOOK Hint Complete this question by entering your answers in the tabs below, Print erences Required 1 Required 2 Required 3 For situations (a)-(c) in requirement 2 above, what would be the net amount of accounts receivable reported in the 2021 balance sheet? Net account ruceivable reported a