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Wildhorse Lld began oper ations in Jan iaty 2023. On December 31, 2023, the end of its first year of oper aticns, the balance in
Wildhorse Lld began oper ations in Jan iaty 2023. On December 31, 2023, the end of its first year of oper aticns, the balance in the company's Accounts Recelvable account was $136,000. All of the company's sales are made on account, and during, 2023,80% of the total crodit sales were collected, and no acoounts were written off as uncollectible. Wildhorse's management groupod its receivables basad an credit risk characteristics, including gpgraphic: location and the length of time the receivables have been butstanding, and estimated the expected rate of credit losses for each group. Based on this, management estimated that the expected total crectit losses would be $13,600. During the followinf year, 2024 , wildhorse had sales totalling $993,000. It collected 75% of these sales, topether with 95% of the cutstanding roccivables from 2023 , During 2024 , the company wrote off $18,000 of roccivables from customers whose acc.cunts were determined to be uncallectible. During the year, the comparyy also recorvered $3.000 from customers whose accounts had previously been written off. (Note that this amount was not included in the collection figur es given above) Management. determined that the expected total credit losses would be $20,925. (a) Prepare the noccssary joumal entrics for rocording all of the preccding transactions in the accounting system of Wildhorse Ltd. for 2023 and 2024 . (Credit account titles are dutomatically indented when amount is entered. Do not indent manually if no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. List all debit entries before credit entries.)
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