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 $2,800. Total retained earnings at the end of Year 1 was $79,200. During Year 2, $2,300 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 $221,000, and cash collections from receivables were $223,028. Uncollectible accounts expense was estimated to be 1 percent of the sales on account for the period. Required Organize the information in accounts under an accounting equation. 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 Spa record for Year 2?
4 Problem: Module 2 Textbook Problem 4 Learning Objective: 2-2 Use the percent of revenue method to account for uncollectible accounts expense 0.5 points The accounts receivable balance for Renue Spa at December 31, Year 1, was $82,000. Also on that date, the balance in the Allowar for Doubtful Accounts was $2,800. Total retained earnings at the end of Year 1 was $79,200. During Year 2, $2,300 of accounts receivable were written off as uncollectible. In addition, Renue unexpectedly collected $160 of receivables that had been written of a previous accounting period. Services provided on account during Year 2 were $221,000, and cash collections from receivables w $223,028. Uncollectible accounts expense was estimated to be 1 percent of the sales on account for the period. Hint Print 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? Complete this question by entering your answers in the tabs below. Req A Req B and C Organize the information in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. If there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank. Not all cells will require entry.) RENUE SPA Horizontal Statements Model Era Acente 4 > Answer is not complete. Complete this question by entering your answers in the tabs below. 0.5 points Req A Req B and C Organize the information in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. If there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank. Not all cells will require entry.) Assets NRV Accounts Receivable Event RENUE SPA Horizontal Statements Model Equity = Liabilities + Retained Earnings Accounts Titles for Retained Earnings Cash + Bal. + = 1. + + + 2a. + + + 2b. 160 + + + (160) = 221,000 - ( (223,028) = + 3. 4. 221,000 Revenue 223,028 + + 5. + = + Uncollectible accounts expense Bal. 223,188 + (2 188) 0 + 221,000 4. Answer is not complete. Complete this question by entering your answers in the tabs below. 0.5 points Req A Req B and C 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 Spa record for Year 2? Show less Allowance for doubtful accounts b 1. b- 2. b- 3 Accounts receivable Net realizable value c. Uncollectible accounts expense
