Allowance Method for Accounting for Bad Debts At the beginning of 2017, EZ Tech Company's Accounts Receivable balance was $223,000, and the balance in Allowance for Doubtful Accounts was $3,800 EZ Tech's sales in 2017 were $1,670,000, 90% of which were on credit. Collections on account during the year were $1,070,000. The company wrote off $6,000 of uncollectible accounts during the year Required: 1. Identify and analyze the sales during 2017 Activity Operating Accounts Statement(s) Cash Increase, Accounts Receivable Increase, Sales Revenue Increase How does this ent Cash increase, Accounts Receivable Increase, Sales Revenue Decrease If a financial state Cash Increase, Accounts Receivable Decrease, Sales Revenue Increase hk. If the effect on a financial statement item is negative, le, a de Cash Increase, Accounts Receivable Decrease, Sales Revenue Decrease Balance Sheet Stockholders Equity Assets Liabilities Revenues [ Identify and analyze the transactions related to the collections of cash during 2017 Activity Accounts Statement(s) Cash Increase, Accounts Receivable Increase Cash Increase, Accounts Receivable Decrease How does this entry affect the If a financial statement item is Cash Decrease, Accounts Recelvable Increase punt box blank. If the effect on a financial statement item is negative, t.e, a decrease, be sy Cash Decrease, Accounts Receivable Decrease Balance Sheet Stockholders Equity Assets Liabilities Revenues Identity and analyze the transactions related to the write-offs of accounts receivable during 2017 Activity Accounts Statement(s) Identity and analyze the transactions related to the write-offs of accounts receivable during 2017 Activity Accounts Statement(s) How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, le, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. If a contra account is decreased, it will have the effect of increasing the corresponding financial statement item. Balance Sheet Stockholders' Assets Liabilities Equity Revenues LL 2. Identity and analyze the adjustments to recognize bad debts assuming that () bod debts expense is 2% of credit sales and (b) amounts expected to be uncollectible are 7% of the year-end accounts receivable. a. Identify and analyze the adjustments to recognize bad debts assuming that bad debts expense is 2% of credit sales. Activity RAP 2. Identify and analyze the adjustments to recognize bad debts assuming that () bad debts expense is 2% of credit sales and (b) amounts expected to be uncollectible are 7% of the year-end accounts receivable. a. Identify and analyze the adjustments to recognize bad debts assuming that bad debts expense is 2% of credit sales. Activity Accounts Statement(s) How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, le, a decrease, be sure to enter the answer with a minus sign. Remember if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. If a contra account is decreased, it will have the effect of increasing the corresponding financial statement Item Balance Sheet Stockholders' Assets Liabilities Equity Revenues b. Identify and analyze the adjustments to recognize bad debts assuming that amounts expected to be uncollectible are 7% of the year-end accounts receivable. Activity Ainte b. Identity and analyze the adjustments to recognize bad debts assuming that amounts expected to be uncollectible are 7% of the year-end accounts receivable. Activity Accounts Statement(s) How does this entry affect the accounting equation? 11 a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, le, a decrease, be sure to enter the answer with a minus sign. Remember: If a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. If a contra account is decreased, it will have the effect of increasing the corresponding financial statement item. Balance Sheet Stockholders Assets Equity