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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

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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, Year 1, was $85,000. Also on that date, the balance in the Allowance for Doubtful Accounts was $2,400. Total retained earnings at the end of Year 1 was $82,600. Duning Year 2 $2,700 of accounts receivable were written off as uncollectible. In addition, Renue unexpectedly collected $190 of receivables that had been written off in a previous accounting period. Services provided on account during Year 2 were $215,000, and cash collections from receivables were $216.972. 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. What amount of uncollectible accounts expense will Renue Spa record for Year 2? Complete this question by entering your answers in the tabs below. Reg A Red Band Organize the information in accounts under an accounting equation (Enter any decreases to account balances with a minus sign there is no effect on the Accounts Titles for Retained Earnings, leave the cell bank. Not all cells will require entry) Complete this question by entering your answers in the tabs below. RA Ree Bandc Organize the information in accounts under an accounting equation (Enter any decreases to account balances with a minun there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank. Not all.calls will require entry) RENUL SPA Horisontal Statements Model Assets Equity Event NRV Accounts Titles for Retained Liabilities Retained Earning Cash Account Recalvable Earnings Bal 1 26 3 4 5 Ball 0 0 Reg Band c> Complete this question by entering your answers in the tabs below. Reg A Reg B and C Based on the preceding information, compute (after year-end adjustment): (1) Balance of Allowance for Doubtful Accounts at December 31, Year 2. (2) Balance of Accounts Receivable at December 31, Year 2. (3) Net realizable value of Accounts Receivable at December 31, Year 2. What amount of uncollectible accounts expense will Renue Spa record for Year 2? Show less b-1 Allowance for doubtful accounts b-2. Accounts receivable b-3. Net realizable value Uncollectible accounts expense C

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