Allowance Method Journalize the following transactions, using the allowance method of accounting for uncollectible receivables. Mar. 17: Received $3,140 from William Pruitt and wrote off the remainder owed of $3,740 as uncollectible. If an amount box does not require an entry, leave it blank. Mar. 17 Cash Allowance for Doubtful Accounts Accounts Receivable-William Pruitt Feedback Check My Work When a customer account is identified as uncollectible, it is written off against the allowance account. July 29: Reinstated the account of William Pruitt and received $3,740 cash in full payment. 20 Accounts Receivable-William Pruitt Allowance for Doubtful Accounts July 29 Cash Accounts Receivable-William Pruitt William Pruit v = Feedback Check My Work In such cases where an account receivable that has been written off is later collected, the account is reinstated. Then record the payment for the account. Feedback Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $760,000; Allowance for Doubtful Accounts has a debit balance of $7,000; and sales for the year total $3,420,000. Bad debt expense is estimated at 1/4 of 1% of sales. a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $760,000 Allowance for Doubtful Accounts $ Bad Debt Expense c. Determine the net realizable value of accounts receivable