Required: a. Prepare the following general journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1. One entry to summarize all accounts written off against the Allowance for Impairment Accounts during year 2. 2. Entries to record the $14,000 in accounts receivable that were subsequently collected. 3. The adjusting entry required at December 31, year 2, to increase the Allowance for Impairment Accounts to $251,000. b. Notice that the Allowance for Impairment Accounts was only $80,000 at the end of year 1, but uncollectible accounts during year 2 totaled $150,000 ($165,000 less the $15,000 reinstated). Do these relationships appear reasonable, or was the Allowance for Impairment Accounts greatly understated at the end of year 1? Explain. View transaction list Journal entry worksheet 1 2 3 4 Record the write-off of receivables throughout the year. Note: Enter debits before credits. Transaction 01 General Journal Debit Credit Record entry Clear entry View general journal > Wilcox Mills is a manufacturer that makes all sales on 30-day credit terms. Annual sales are approximately $30 million. At the end of year 1, accounts receivable were presented in the company's statement of financial position as follows. Accounts receivable from clients Less: Allowance for impairment accounts $3,100,000 80,000 During year 2, $185,000 of specific accounts receivable were written off as uncollectible. Of these accounts written off, receivables totaling $14,000 were subsequently collected. At the end of year 2, an aging of accounts receivable indicated a need for a $251,000 allowance to cover possible failure to collect the accounts currently outstanding. Wilcox Mills makes adjusting entries for uncollectible accounts only at year-end. Required: a. Prepare the following general journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1. One entry to summarize all accounts written off against the Allowance for Impairment Accounts during year 2. 2. Entries to record the $14,000 in accounts receivable that were subsequently collected. 3. The adjusting entry required at December 31, year 2, to increase the Allowance for Impairment Accounts to $251,000. b. Notice that the Allowance for Impairment Accounts was only $80,000 at the end of year 1, but uncollectible accounts during year 2 totaled $150,000 ($165,000 less the $15,000 reinstated). Do these relationships appear reasonable, or was the Allowance for Impairment Accounts greatly understated at the end of year 1? Explain. View transaction list Journal entry worksheet < 1 2 3 4 Record the write-off of receivables throughout the year. Note: Enter debits before credits. Transaction 01 General Journal Debit Credit View transaction list Journal entry worksheet 1 2 3 4 Record the entry summarizing the reinstatement of accounts proving to be collectible. Note: Enter debits before credits. Transaction 2a General Journal Debit Credit Record entry Clear entry View general journal > View transaction list Journal entry worksheet < 1 2 3 4 Record the collection of accounts reinstated. Note: Enter debits before credits. Transaction 2b General Journal Debit Credit Record entry Clear entry View general journal > View transaction list Journal entry worksheet < 1 2 3 4 Record the entry to adjust the credit balance of allowance for impairment accounts. Note: Enter debits before credits. Transaction 03 General Journal Debit Credit Record entry Clear entry View general journal