H eztomheducationcom M Question 3 - Wk1 - Apply: Homework [due Day 7] Co... Wk 1 - Apply: Homework [due Day 7] 0 Saved 3 33.33 points Pelerences Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company's scal year-end. The 2020 balance sheet disclosed the following: Current assets: Receivables, net of allowance for uncollectible accounts of $43,000 $ 497,000 During 2021, credit sales were $1,815,000, cash collections from customers $1,895,000, and $52,000 in accounts receivable were written off. In addition, $4,300 was collected from a customer whose account was written off in 2020, An aging of accounts receivable at December 31, 2021. reveals the following: Percentage of YearEnd Percent Age Group Receivables in Group uncollectible 060 days 60% 396 6190 days 10 5 91-120 days 20 25 Over 120 days 10 45 Requlred: 1. Prepare summaryjournal entries to account for the 2021 write-offs and the collection of the receivable previously written off. 2. Prepare the year-end adjusting entry for bad debts according to each ofthe following situations: a. Bad debt expense is estimated to be 2% of credit sales for the year. b. Bad debt expense is estimated by adjusting the allowance for uncollectible accounts to the balance that reduces the carrylng value of accounts receivable to the amount of cash expected to be collected. The allowance for uncollectible accounts is estimated to be10% ofthe yearend balance in accounts receivable. c. Bad debt expense is estimated by adjusting the allowance for uncollectible accounts to the balance that reduces the carrying value of accounts receivable to the amount of cash expected to be collected. The allowance for uncollectible accounts is determined by an aging of accounts receivable. 3. For situations (a)(c) in requirement 2 above, what would be the net amount ofaccounts receivable reported in the 2021 balance sheet? Complete thls questlon by entering your answers In the tabs below. Requ ed 1 ' RequiredZ Prepare summary journal entries to account for the 2021 write-offs and the collection of the receivable previously written off.(lf no entry is required for a transaction/event, select "No journal entry required" in the rst account field.) ' Required 3 ( Prev 3 of 3 Next Help Save 5 Exit Submit