QUESTION 1: (15 marks)

XYZ Corp. had an unadjusted $3,500 credit balance in Allowance for Doubtful Accounts at December 31, 2021, before the current year's provision for uncollectible accounts. The Ageing Schedule reveals the following information:

Estimated Percentage Uncollectible

0.5% 4 % 8 % 20%

$ 235,000

1. XYZ decided to write off an overdue account, $2,000. Prepare the journal entry for this write off, using a date of December 31.

2. Prepare the adjusting journal entry, on XYZs fiscal year-end December31, 2021 relating to accounts receivables uncollectibles.

3. Show the balance sheet representation showing Accounts Receivable and net Accounts Receivables at December 31, 2021.

D. In a fewwords, explain how the writeoff of an account receivable impacts net Accounts Receivable?