Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The accounts recelvable balance for Renue Spa at December 31, Year 1, was $86,000. Also on that date, the balance in the Allowance for Doubtful

image text in transcribed
image text in transcribed
The accounts recelvable balance for Renue Spa at December 31, Year 1, was $86,000. Also on that date, the balance in the Allowance for Doubtful Accounts was $2,200. Total retained earnings at the end of Year 1 was $83,800. During Year 2,$2,400 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 $217,000, and cash collections from receivables were $218,991. 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 Recelvable 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? Compiete this question by entering your answers in the tabs below. Organize the information in accounts under an accounting equation. (Enter any decreases to account baiances with a minus sign. If there is no effect on the Accounts Titles for Retained Rarnings, leave the cell biank. Not all cell will require entry.) The accounts receivable balance for Renue Spa at December 31 , Year 1 , was $86,000. Also on that date, the balance in the Allowance for Doubtful Accounts was $2,200. Total retained earnings at the end of Year 1 was $83,800. During Year 2,$2,400 of accounts receivable were written off as uncollectlble. 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 $217,000, and cash collections from receivables were $218,991. Uncollectible accounts expense was estimated to be 1 percent of the sales on account for the perlod. 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. 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Inventory

Authors: Steven M. Bragg

4th Edition

1642210714, 9781642210712

More Books

Students also viewed these Accounting questions