Question 2 (19 marks)

Slate Incorporated has an Accounts Receivable balance of $60,000 as of July 31, 2020. Before the month end adjustment, Allowance for Uncollectible accounts has a credit balance of

$11,000. Credit sales during the month were $25,000 with collections on account of $13,500.

The company estimates bad debt expense to be $3,000 for the month. Write-off of uncollectible receivables totaled $4,000 and an account of $2,400 was recovered.

Required

1. Journalize sales, collections, write-offs of uncollectible, recovery of accounts receivable and bad debt expense by the allowance method for the month. Explanations are not required.
2. Calculate the ending balances in Accounts Receivable, Allowance for Doubtful Accounts and Net Accounts Receivable.