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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,

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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 2023 balance sheet disclosed the following: Current asiets: Rectivables, net of allowance for uncollectible accounts of 540 , eed 6. 482,600 During 2024, credit sales were $1,800,000, cash collections from customers $1,880,000, and $45,000 in accounts recelvable were written oft. In addition, 54,000 was collected from a customer whose account was written off in 2023. An aging of accounts receivable at December 31, 2024, reveals the following: Required: 1. Prepare summary joumal entries to occount for the 2024 write-offs and the collection of the recelvable previousty written off: 2. Prepere the year-end odjusting entry for bad debts according to each of the following situations: a. Bad debt expense is estimated to be 2% of eredit sales for the year. b. Bod debt expense is estimated by adjusting the allowance for uncollectible accounts to the balance that reduces the Carrying value of accounts recelvable to the amount of cash expected to be collected. The allowance for uncollectible occounts is estimated to be 10% of the year-end balance in accounts recelvable. c. Bad debt expense is estimeted by adjusting the allowance for uncollectible accounts to the balance that reduces the carrying value of accounts recelvable to the amount of cash expected to be collected. The allowance for uncollectible occounts is determined by on nging of accounts receivable. 3. For siluations (a)(c) in requirement 2 above, what would be the net amount Prepare the year-end adjusting entry for bad debts according to each of the following situations: a. Bad debt expense is estimated to be 2% of credit sales for the year. b. 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 recelvable. c. Bad debt expense is estimated by adjusting the allowance for uncollectible accounts to the balance that reduces the carrying value of accounts recelvable to the amount of cash expected to be collected. The allowance for uncollectible accounts is determined by an aging of accounts receivable. Note: If no entry is required for a transactionvevent, solect "No journal entry required" in the first account fleld. Show less

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