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QUESTION 4 10 pc Your trial balance before adjustment shows the following balances: Debit Credit Accounts receivable $ 220,000 Allowance for Uncollectible accounts 2,000 Sales

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QUESTION 4 10 pc Your trial balance before adjustment shows the following balances: Debit Credit Accounts receivable $ 220,000 Allowance for Uncollectible accounts 2,000 Sales (all on credit) $ 8,000,000 Sales returns and allowances 9,000 Sales discounts 11,000 In calculating annual bad debts, you age the accounts and estimate that a total of 5% of gross accounts receivable will become uncollectible. 1. Prepare the entry to record bad debts. 2. What is the net realizable value of accounts receivable after making this adjusting entry? 3. During the following year you wrote off $6,000 of accounts. Prepare the entry to record the write-off 4. Later you received $1,000 on accounts which had previously been written off. Prepare the entry to reinstate the accounts and record this collection

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