Question:

Raintree Cosmetic Company sells............2020 balance sheet disclosed the following:

Current assets: Receivables, net of allowance for uncollectible accounts of $30,000 $432,000 During 2011, credit sales were $1,750,000, cash collections from customers $1,830,000, and $35,000 in accounts receivable were written off. In addition, $3,000 was collected from a customer whose account was written off in 2010. An aging of accounts receivable on December 31, 2011, reveals the following: Age Group Percentage of Year-end Receivables in Group Percent Uncollectible 0 - 60 65% 4% 61- 90 20 15 91 - 120 10 25 Over 120 days 5 40 Required: 1. Prepare summary journal entries to account for the 2021 write-offs and the collection of the receivables previously written off. 2. Prepare the year-end adjusting entry for bad debts according to each of the following situations: a. Bad debt expense is estimated to be 3% of credit sales for the year. b. Bad debt expense is estimated by computing the net realizable value of the receivables. The allowance for uncollectible accounts is estimated to be 10% of the year-end balance in accounts receivable. c. Bad debt expense is estimated by computing the net realizable value of the receivables. The allowance for uncollectible accounts is determined by the aging of accounts receivable. 3. For situations a to c in requirement 2 above, what would be the net amount of accounts receivable reported in the 2011 balance sheet