Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at Decemper 31, the company's fiscal year-end, The 2023 balance sheet disclosed the following: Current assets: Recelvables, net of allowabce for uncollectible accountis of $42,000492,000 During 2024, credit sales were $1,810,000, cash collections from customers $1,890,000, and $51,000 in accounts receivable were written off. In addition, $4,200 was collected from a customer whose occount was written off in 2023. An aging of accounts recelvable at December 31,2024 , reveals the following: Required: 1. Prepare summary journal entries to account for the 2024 write-offs and the collection of the recelvable 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 4% of credit sales for the yeat, 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 recelvable. 3. For situations (o)-(c) in requirement 2 above, what would be the net amount of occounts recelvable reported in the 2024 balance sheet? Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at Decemper 31, the company's fiscal year-end, The 2023 balance sheet disclosed the following: Current assets: Recelvables, net of allowabce for uncollectible accountis of $42,000492,000 During 2024, credit sales were $1,810,000, cash collections from customers $1,890,000, and $51,000 in accounts receivable were written off. In addition, $4,200 was collected from a customer whose occount was written off in 2023. An aging of accounts recelvable at December 31,2024 , reveals the following: Required: 1. Prepare summary journal entries to account for the 2024 write-offs and the collection of the recelvable 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 4% of credit sales for the yeat, 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 recelvable. 3. For situations (o)-(c) in requirement 2 above, what would be the net amount of occounts recelvable reported in the 2024 balance sheet
