Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company's fiscal year-end. The 2020 balance sheet disclosed the following:

Current assets:Receivables, net of allowance for uncollectible accounts of $46,000$512,000

During 2021, credit sales were $1,830,000, cash collections from customers $1,910,000, and $55,000 in accounts receivable were written off. In addition, $4,600 was collected from a customer whose account was written off in 2020. An aging of accounts receivable at December 31, 2021, reveals the following:

Percentage of Year-EndPercentAge GroupReceivables in GroupUncollectible0?60 days60%3%61?90 days10591?120 days2025Over 120 days1045

Required:

1.Prepare summary journal entries to account for the 2021 write-offs and the collection of the receivable previously written off.

2.Prepare the year-end adjusting entry for bad debts according to each of the following situations:

1. Bad debt expense is estimated to be 2% of credit sales for the year.
2. Bad debt expense is estimated by adjusting the allowance for uncollectible accounts to the balance that reduces the carrying value of accounts receivable to the amount of cash expected to be collected. The allowance for uncollectible accounts is estimated to be 10% of the year-end balance in accounts receivable.
3. Bad debt expense is estimated by adjusting the allowance for uncollectible accounts to the balance that reduces the carrying value of accounts receivable to the amount of cash expected to be collected. The allowance for uncollectible accounts is determined by an aging of accounts receivable.

3.For situations (a)?(c) in requirement 2 above, what would be the net amount of accounts receivable reported in the 2021 balance sheet?

Required 1 Required 2 Required 3 :Prepare the year-end adjusting entry for bad debts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1 a. Bad debt expense 36,600 Allowance for uncollectible accounts 36,600 2 b. Bad debt expense 823.500 Allowance for uncollectible accounts 823,500 3 C. Bad debt expense Allowance for uncollectible accounts Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 For situations (a)(c} in requirement 2 above, what would be the net amount of accounts receivable reported in the 2021 balance sheet? Required 1 Required 2 Required 3 Prepare summary journal entries to account for the 2021 write-offs and the collection of the receivable previously written off. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Event General Journal Debit Credit 1 1 Allowance for uncollectible accounts 55,000 Accounts receivable 55,000 2 2 Accounts receivable 4,600 Allowance for uncollectible accounts 4,600 3 3 Cash 4,600 Accounts receivable 4,600