Q7:

C Company offers credit terms to its customers. At the end of 2024, accounts receivable totaled $695,000. The allowance method is used to account for uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $46,000 at the beginning of 2024 and $28,000 in receivables were written off during the year as uncollectible. Also, $2,600 in cash was received in December from a customer whose account previously had been written off. The company estimates bad debts by applying a percentage of 10% to accounts receivable at the end of the year.

Required:

1.Prepare journal entries to record the write-off of receivables, the collection of $2,600 for previously written off receivables, and the year-end adjusting entry for bad debt expense.

2.How would accounts receivable be shown in the 2024 year-end balance sheet?

Note: Enter debits before credits. Journal entry worksheet Record the reinstatement of an account previously written off. Note: Enter debits before credits. Journal entry worksheet Record collection of account previously written off. Note: Enter debits before credits. Journal entry worksheet 1 Note: Enter debits before credits