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Use these facts for this question and the following two questions. Patriots Corp. reported the following account balances (always assume account balances are normal unless
Use these facts for this question and the following two questions. Patriots Corp. reported the following account balances (always assume account balances are "normal" unless a problem tells you otherwise.): Accounts Receivable, 1/1/Year3 $ 80,000 Allowance for Uncollectible accounts 1/1/Year3 (normal balance for a contra-asset... aka credit) $ 2,400 Sales on Credit, during Year3 $ 300,000 Collections on account, during Year3 $ 270,000 Write-offs of uncollectible accounts, during Year3 $ 2,800 QUESTION 10 See Patriots Corp. question setup. What is the balance in the allowance for uncollectible accounts at 12/31/Year3 (before any adjusting entries)? Hint: Remember this is before the adjusting entries, so this means you are calculating the balance before the company would have booked the adjusting entry to recognize the Year3 allowance adjustment. Again, there's a lot going on here, so use that filled in table! Your answer would be the number in the cell noted Cash Acct. Rec. Allowance R.E. 80,000 2,400) Specific RE impact Revenue Beginning balance Sales on credit Collect on account Write-off balances Balances before adjustment a $400 debit abnormal) b.$400 credit (normal) C. $2,400 credit (normal) d. $2,800 debit (abnormal) e none of the above
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