4 5 points eBook Hint Ask Exercise 7-6A (Static) Effect of recovering a receivable previously written off LO 7-1 Renue Spa had the following balances at December 31, Year 2; Cash of $15,000, Accounts Receivable of $61,000, Allowance for Doubtful Accounts of $3,750, and Retained Earnings of $72,250. During Year 3, the following events occurred: 1. $2,100 of accounts receivable were written off as uncollectible. 2. Renue unexpectedly collected $500 of receivables that had been written off in a previous accounting period. 3. Services provided on account during Year 3 were $215,000. 4. Cash collections from receivables were $218,000. 5. Uncollectible accounts expense was estimated to be 2 percent of the sales on account for the period. Required: 1. Organize the transaction data in accounts under an accounting equation. 2. Based on the preceding information, compute (after year-end adjustment): (1) Balance of Allowance for Doubtful Accounts at December 31, Year 3. (2) Balance of Accounts Receivable at December 31, Year 3. (3) Net realizable value of Accounts Receivable at December 31, Year 3. 3. What amount of uncollectible accounts expense will Renue Spa have for Year 3? Complete this question by entering your answers in the tabs below. Req A Organize the transaction data in accounts under an accounting equation. Note: Enter any decreases to account balances with a minus sign. Not all cells require input. Event Req B and C Balance 1. 2a. 2b. 3. 4. 5. Assets Cash + + + + NRV Accounts Receivable RENUE SPA Accounting Equation = Liabilities + = + Equity Retained Earnings Account Titles for Retained Earnings

Exercise 7.6A (Static) Effect of recovering a recelvable previously written off LO 7-1 Renue Spa had the following balances at December 3t. Year 2 ; Cash of $15,000, Accounts Receivable of \$61,000. Allowance for Doubtful Accounts of $3,750, and Rotained Earnings of $72,250. During Year 3, the following events accurred: 1. 52,100 of accounts receivable were written off as uncollectble. 2. Renue unexpectedly collected $500 of receivables that had been written off in a previous accounting period. 3. Services provided on account during Year 3 were $215,000. 4 . Cash collections from receivables were $2.18.000. 5. Uncollectible accounts expense was estimated to be 2 percent of the sales on account for the period. Required: 1. Organize the transaction data in accounts undor an accounting equation. 2. Based on the preceding information, compute (affer year-end od,ustment: (1) Balance of Allowance for Doubthi Accounts at Decemboi 31, Yoar 3. (2) Ealance of Accounts Recewable at December 31, Year 3. (3) Net realizable value of Accounts Recelvabie at December 31, Year 3. 3. What amount of uncollectble accounts expense wil Renue Spa have for Year 3? Complete this question by entering your answers in the tabs below. Organize the tranchopon data in accounts under an accounting equation. Note: fner any decreases to account balances with a minus sign, Not all cels require input. Exercise 7.6A (Static) Effect of recovering a recelvable previously written off LO 7-1 Renue Spa had the following balances at December 3t. Year 2 ; Cash of $15,000, Accounts Receivable of \$61,000. Allowance for Doubtful Accounts of $3,750, and Rotained Earnings of $72,250. During Year 3, the following events accurred: 1. 52,100 of accounts receivable were written off as uncollectble. 2. Renue unexpectedly collected $500 of receivables that had been written off in a previous accounting period. 3. Services provided on account during Year 3 were $215,000. 4 . Cash collections from receivables were $2.18.000. 5. Uncollectible accounts expense was estimated to be 2 percent of the sales on account for the period. Required: 1. Organize the transaction data in accounts undor an accounting equation. 2. Based on the preceding information, compute (affer year-end od,ustment: (1) Balance of Allowance for Doubthi Accounts at Decemboi 31, Yoar 3. (2) Ealance of Accounts Recewable at December 31, Year 3. (3) Net realizable value of Accounts Recelvabie at December 31, Year 3. 3. What amount of uncollectble accounts expense wil Renue Spa have for Year 3? Complete this question by entering your answers in the tabs below. Organize the tranchopon data in accounts under an accounting equation. Note: fner any decreases to account balances with a minus sign, Not all cels require input