Link Back to Chapter 4 (Closing Entries). Interbiz Interactive completed the following transactions during 20X1 and 20X2: 20X1 Dec. 31 Estimated that uncollectible-account expense for the year was 3/4 of 1% on credit sales of $290,000, and recorded that amount as expense. 31 Made the closing entry for uncollectible-account expense.

20X2 Jan. 17 June 29. Aug. 6 Sept. 4 Dec. 31 31 31 Required Sold inventory to Mitch Vanez. $652, on credit terms of 2/10 n/30. Ignore cost of goods sold. Wrote off the Mitch Vanez account as uncollectible after repeated efforts to col- lect from him. Received $250 from Mitch Vanez, along with a letter stating his intention to pay his debt in full within 30 days. Reinstated his account in full. Received the balance due from Mitch Vanez. Made a compound entry to write off the following accounts as uncollectible: Bernard Klaus, $737: Marie Monet. $348; and Terry Fuhrman, $622. Estimated that uncollectible-account expense for the year was 2/3 of 1% on credit sales of $400,000, and recorded that amount as expense. Round to the nearest dollar. Made the closing entry for uncollectible-account expense. 1. Open general ledger accounts for Allowance for Uncollectible Accounts and Uncollectible-Account Expense. Keep running balances. 2. Record the transactions in the general journal, and post to the two ledger accounts. 3. The December 31, 20X2. balance of Accounts Receivable is $139.000. Show how Accounts Receivable would be reported on the balance sheet at that date.