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The one below is for # 7 to answer Even all of the work you have done so far is correct, you may not have
The one below is for # 7 to answer
Even all of the work you have done so far is correct, you may not have completed everything. Exercise 5-6 Effect of recovering a receivable previously written off LO 5-1, 5-2 The accounts receivable balance for Don's Shoe Repair at December 31, 2014, was S90,000. Uncollectible accounts expense was estimated to be 1 percent of the sales on account for the period. Also on that date, the balance in Allowance for Doubtful Accounts was $2,000 and the balance in Retained Earnings was $88.000. During 2015, $2,200 of accounts receivable were written off as uncollectible. In addition, Don's Shoe Repair unexpectedly collected $170 of receivables that had been written off in a previous accounting period. Sales on account during 2015 were S218,000, and cash collections from receivables were $220,000 Required a. Organize the information in accounts under an accounting equation. (Show effect on the accounting equation in the order provided in the question. Enter any decreases to account balances with a minus sign. Select "NA" if there is no effect on the "Accounts Titles for Retained Earnings") Answer is complete but not entirely correct DON'S SHOE REPAIR Horizontal Statements Model Assets Equity Accounts Titles for Retained Event Liabilities Accounts Retained Earnings Cash Allowance Receivable Earnings 0 90,000 I- 2000 OX Bal OV NAA (2,200) NAA 2a. 170 (170) 170V NA. 2b. 3 0 0 218.000 Revenue 218,000 4. ov 220,000 (220,000) NA 5 ov 2,180 0 (2,180) v Uncollectible accounts expense 220,170 85,800 2,150 215.820 Bal
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