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The accounts receivable balance for Renue Spa at December 31, Year 1, was $82,000. Also on that date, the balance in the Allowance for Doubtful
The accounts receivable balance for Renue Spa at December 31, Year 1, was $82,000. Also on that date, the balance in the Allowance for Doubtful Accounts was $2,200. During Year 2, $2,700 of accounts receivable were written off as uncollectible. In addition, Renue unexpectedly collected $160 of receivables that had been written off in a previous accounting period. Services provided on account during Year 2 were $220,000, and cash collections from receivables were $222,018. Uncollectible accounts expense was estimated to be 1 percent of the sales on account for the period. Required a. Record the transactions in general journal form and post to T-accounts. b. 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. c. What amount of uncollectible accounts expense will Renue report for Year 2? Complete this question by entering your answers in the tabs below. Required A General Journal Required AT Accounts Required B Required C Record the transactions in general journal form. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Required A General Journal Required A T Accounts Required B Required C Record the transactions in general journal form. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet B CDEF Record entry for uncollectible accounts written off. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Required A General Journal Required A T Accounts Required B Required C Record the transactions in general journal form. (If no entry is required for a transaction/event, select "No journal entry first account field.) View transaction list A Record entry for uncollectible accounts written off. B Record entry for reinstated previously written-off accounts. CRecord entry for collected reinstated accounts. D Record services on account. E Record entry for collection of accounts receivable. F Record entry for uncollectible accounts expense. Note: journal entry has been entered EX Credit View paparaljournal. Post the transactions to T-accounts. Cash (partial) Service Revenue Beginning Balance Beginning Balance Ending Balance Ending Balance Accounts Receivable Uncollectible Accounts Expense Beginning Balance Beginning Balance Ending Balance Ending Balance Allowance for Doubtful Accounts Beginning Balance Ending Balance Required A General Required A T Accounts Required B Required C Journal 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. (1) Allowance for doubtful accounts (2) Accounts receivable (3) Net realizable value Required A General Required A T Accounts Required B Required C Journal What amount of uncollectible accounts expense will Renue report for Year 2? Uncollectible accounts expense < Required B Benviral
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