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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
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 Current Accounts Receivable $150,000 0.5% 1-30 days past due 70,000 4 % 31-60 days past due 10,000 8 % 61-90 days past due 5,000 20% $ 235,000 Required: A. XYZ decided to write off an overdue account, $2,000. Prepare the journal entry for this write off, using a date of December 31. B. Prepare the adjusting journal entry, on XYZ's fiscal year-end December 31, 2021 relating to accounts receivables' uncollectibles. C. Show the balance sheet representation showing Accounts Receivable and net Accounts Receivables at December 31, 2021. D. In a few words, explain how the 'write off of an account receivable impacts net Accounts Receivable
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