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Question 2 (14 points) Accounts Receivable A trial balance at December 31, 2020 before adjustment included the following: Dobit Credit Accounts receivable $75,000 Allowance for
Question 2 (14 points) Accounts Receivable A trial balance at December 31, 2020 before adjustment included the following: Dobit Credit Accounts receivable $75,000 Allowance for doubtful accounts 250 Sales $846,000 Sales returns and allowances 4,250 Required: a) Give journal entry assuming that the estimate of uncollectibles is determined by taking 3% of net accounts receivable at December 31, 2020. (5 Marks) b) What is the Net Realizable Value of receivables at December 31, 2020 after adjustments? (3 marks) c) Prepare the journal entry to record the customer account of $1,500 was written off in February 2020 (2 Marks) d) In December 2020 the company has collected $1,000 of the account that previously written off in part c above. Record the necessary journal entry (entries). (4 marks) Format B I U
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