Quality Book Sales began Year 2 with $78,500 Accounts Receivable and $4.710 Allowance for Doubtful Accounts During the year, Quality experienced the following transactions: 1. Sales on Account $550,000 2. Collection on Accounts Receivable $556,000 3. After several collection attempts, wrote off $2,850 of accounts that could not be collected. 4. Estimated 4% of receivables are uncollectible. What is the balance in Accounts Receivable immediately after the write-off in 3 above? Do not enter dollar signs or commas in your answers. 69650 Correct! Beginning Balance 78500 + Sales on Account 550000 - Collections 556000 - Writeoff 2850 t Question 2 0/1 pts Which A/R amount is used to estimate uncollectible accounts in the percent of receivables method? $78,500 This is the beginning balance in A/R, but this figure does not include sales on account during the period. $550.000 $69.650 $72.500 23 569.650 572,500 0/1 pts Question 3 What is the balance in the Allowance for Doubtful Accounts immediately after the write-off in 3! 2850 Remember that the allowance account has a beginning balance and it is reduced by the write-off Question 4 0/1 pts What is the Uncollectible Accounts Expense for Year 2? 896 First you need to determine the allowance total given the currenit AR balance. Simply multiply the 4% by A/R Then compare this number to the value in the ADA account. ADA will need to be increased to equal the allowance. The amount of the Increase is the current Uncollectible Accounts Expense. Question 5 0/1 pts Which transaction generates a debit to the contra asset Allowance for Doubtful Accounts Writing of an uncollectible account Estimating the value of uncollectible accounts Estimating uncollectible accounts results in an increase to ADA To increase a contra asset, you must credit it