The accounts receivable balance for Dons Shoe Repair at December 31, 2014, was $82,000. Uncollectible accounts expense was estimated to be 1 percent of the sales on account for the period. Also on that date, the balance in Allowance for Doubtful Accounts was $2,300 and the balance in Retained Earnings was $79,700. During 2015, $2,400 of accounts receivable were written off as uncollectible. In addition, Dons Shoe Repair unexpectedly collected $160 of receivables that had been written off in a previous accounting period. Sales on account during 2015 were $213,000, and cash collections from receivables were $214,954.

Required

a.

Organize the information in accounts under an accounting equation. (Show effect on the accounting equation in the order provided in the question. Enter any decreases to account balances with a minus sign. Select "NA" if there is no effect on the "Accounts Titles for Retained Earnings".)

DONS SHOE REPAIR

Horizontal Statements Model
Event	Assets					=	Liabilities	+	Equity	Accounts Titles for Retained Earnings
	Cash	+	Accounts Receivable		Allowance				Retained Earnings
Bal.		+				=		+
1.		+				=		+
2a.		+				=		+
2b.		+				=		+
3.		+				=		+
4.		+				=		+
5.		+				=		+		NA
Bal.	0		0		0		0		0

b.

Based on the preceding information, compute (after year-end adjustment):

(1) Balance of Allowance for Doubtful Accounts at December 31, 2015.

(2) Balance of Accounts Receivable at December 31, 2015.

(3) Net realizable value of Accounts Receivable at December 31, 2015.

Allowance for doubtful accounts
Accounts receivable
Net realizable value

c.

What amount of uncollectible accounts expense will Dons Shoe Repair report for 2015?

Uncollectible accounts expense