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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
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 $3,000. Total retained earnings at the end of Year 1 was $78,000. During Year 2, $2,100 of accounts receivable were written off as uncollectible. In addition, Renue unexpectedly collected $150 of receivables that had been written off In a previous accounting period. Services provided on account during Year 2 were $212,000, and cash collections from receivables were $213,945. Uncollectible accounts expense was estimated to be 1 percent of the sales on account for the period. Required a. Organize the Information in accounts under an accounting equation. b. Based on the preceding Information, compute (after year-end adjustment): 1. (1) Balance of Allowance for Doubtful Accounts at December 31, Year 2 2 (2) Balance of Accounts Receivable at December 31, Year 2 3. (3) Net realizable value of Accounts Receivable at December 31, Year 2 C. What amount of uncollectible accounts expense will Renue Spa record for Year 2? Answer is not complete. Complete this question by entering your answers in the tabs below. Req A Req B and C
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