Wonderland Landscaping Services started the year 2020 with an Accounts Receivable balance of $62,600 and an Allowance for Doubtful Accounts balance of $4,900. During the year, $5,000 of accounts receivable were identified as uncollectible. Sales revenue for 2020 was $444,000, including credit sales of $428,000. Cash collections on account were $431,000 during the year. The aging of accounts receivable yields these data. i (Click the icon to view the data.) You're the accountant preparing the December 31, 2020, year-end entries. Required Requirement 1. Journalize Wonderland's (a) credit sales, (b) cash collections on account, (c) write-off of the accounts receivable identified as uncollectible, and (d) bad debt expense based on 0.5 percent of credit sales. Start by entering the journal entry for the credit sales recorded in 2020. (Record debits first, then credits. Exclude explanations from journal entries.) Journal Entry Accounts Debit Credit Accounts Receivable 444000 Sales Revenue 444000 Next, journalize the collections on account. Journal Entry Accounts Debit Credit Now, record the entry to journalize the write-offs of uncollectibles. Journal Entry Accounts Debit Credit Now, journalize the bad debt expense. Journal Entry Accounts Debit Credit Requirement 2. Prepare a T-account for the Accounts Receivable and Allowance for Doubtful Accounts accounts. In the following T-accounts, enter the adjusting entries in the order recorded in the preceding steps. Calculate the balance of each account. (If a box is not used in the T-accounts, leave the box empty; do not enter a zero.) Allowance for Doubtful Accounts Accounts Receivable Bal. 62,600 Bal. 4,900 Requirement 3. Calculate the balance in the Allowance for Doubtful Accounts based on the aging-of-accounts-receivable method. (Round each answer to the nearest whole number.) Age of Accounts Receivable 1-30 31-60 61-90 Over 90 Total Days Days Days Days Receivables Amount of receivable Estimated percent uncollectible $36,000 $6,600 $6,700 $5,300 $ 54,600 1% 2% 3% 50% Estimated amount uncollectible Requirement 4. Make any adjustment required to the Allowance for Doubtful Accounts based on the calculation in requirement 3. Journal Entry Accounts Debit Credit Requirement 5. Show how Wonderland Landscaping Services should report Accounts Receivable on the balance sheet. There are two generally accepted methods to present receivables on the balance sheet. The first method shows the allowance for doubtful accounts amount in the line item description. (Choose the account title, enter the allowance for doubtful accounts amount, and then calculate the net accounts receivable amount.) Balance Sheet (Partial): Current assets: The second method used to present receivables on the balance sheet shows the allowance for doubtful accounts on a line of its own. Balance Sheet (Partial): Accounts receivable, net Data Age of Accounts - 0-30 31-60 61-90 Over 90 Total Days Days Days Days Receivables Amount of receivable $36,000 $6,600 $6,700 $5,300 $54,600 Percent uncollectible 1 % 2% 3% 50% Print Done