Wilcox Mills is a manufacturer that makes all sales on $30-$day credit terms. Annual sales are approximately $$30$ million. At the end of year $1,$ accounts receivable were presented in the company's statement of financial position as folilaws.

Accounts receivable from clients

$$3,198,080$

Less: Allowance for impairnent accounts

$8,6$

During year $2,$$$165,000$ of specific accounts receivable were written off as uncollectible. Of these accounts written off, recelvables totaling $$18,000$ were subsequently collected. At the end of year $2,$ an aging of accounts receivable indicated a need for a $$227,000$ allowance to cover possibie fallure to collect the accounts currently outstanding.

Wilcox Mills makes adjusting entries for uncollectible accounts only at year$-$end.

Required:

a$.$ Prepare the following general journal entries. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

One entry to summarize all accounts written off against the Allowance for impairment Accounts during year $2.$

Entries to record the $$18,000$ in accounts recelvable that were subsequently collected.

The adjusting entry required at December $31,$ year $2,$ to increase the Allowance for impairment Accounts to $$227,000.$

b$.$ Notice that the Allowance for Impairment Accaunts was only $$80,000$ at the end of year $1,$ but unccllectible accounts during year $2$ totaied $$150,000($ $$165,000$ less the $$15,000$ reinstated$).$ Do these relationships appear reasonable, or was the Allowance for Impairment Accounts greatly understated at the end of year $1?$ Explain.

Journal entry worksheet

$1$

$2$

$3$

$4$

Record the write$-$off of recelvables throughout the year,