Question
The accounts receivable balance for Renue Spa at December 31, Year 1, was $81,000. Also on that date, the balance in the Allowance for Doubtful
The accounts receivable balance for Renue Spa at December 31, Year 1, was $81,000. Also on that date, the balance in the Allowance for Doubtful Accounts was $2,400. During Year 2, $2,800 of accounts receivable were written off as uncollectible. In addition, Renue unexpectedly collected $110 of receivables that had been written off in a previous accounting period. Services provided on account during Year 2 were $222,000, and cash collections from receivables were $224,037. Uncollectible accounts expense was estimated to be 1 percent of the sales on account for the period.
Required
Record the transactions in general journal form and post to T-accounts.
Based on the preceding information, compute (after year-end adjustment):
(1) Balance of allowance for doubtful accounts at December 31, Year 2.
(2) Balance of accounts receivable at December 31, Year 2.
(3) Net realizable value of accounts receivable at December 31, Year 2.
What amount of uncollectible accounts expense will Renue report for Year 2? Record answers in the following tables to complete:
first account field.) Journal entry worksheet Note: Enter debits betore credits. Journal entry worksheet D F Record entry for reinstated previously written-off accounts. Note: Enter debits before credits. Journal entry worksheet Record entry for collected reinstated accounts. Note: Enter debits before credits. Journal entry worksheet ABC Record services on account. Note: Enter debits before credits. Journal entry worksheetStep by Step Solution
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