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Renue Spa had the following balances at December 31, Year 2: Cash of $15,000, Accounts Receivable of $88,000, Allowance for Doubtful Accounts of $2,600, and
Renue Spa had the following balances at December 31, Year 2: Cash of $15,000, Accounts Receivable of $88,000, Allowance for Doubtful Accounts of $2,600, and Retained Earnings of $100,400. During Year 3, the following events occurred: 1. $2,700 of accounts receivable were written off as uncollectible. 2. Renue unexpectedly collected $110 of receivables that had been written off in a previous accounting period. 3. Services provided on account during Year 3 were $222,000. 4. Cash collections from receivables were $224,037. 5. Uncollectible accounts expense was estimated to be 1 percent of the sales on account for the period. Required: 1. Organize the transaction data in accounts under an accounting equation. 2. Based on the preceding information, compute (after year-end adjustment): 1. (1) Balance of Allowance for Doubtful Accounts at December 31, Year 3. 2. (2) Balance of Accounts Receivable at December 31, Year 3 3. (3) Net realizable value of Accounts Receivable at December 31 , Year 3. 3. What amount of uncollectible accounts expense will Renue Spa have for Year 3 ? Based en the preceding irtomation, compute (aeter vear-end adjustment): [1] Balarce of Allowance for Doubtful Accounts at December 31, Year 3 . (2) Balance of Accounts Receivable at December 31, Year 3, (3) Nec realizable value of accounts Recehable at, Decertiger 31, tear 3 . What amount of uncollectible accounts expense win Renue Spa have for yoar 3
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