The accounts receivable balance for Renue Spa at December 31, Year 1, was $85,000. Also on...
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The accounts receivable balance for Renue Spa at December 31, Year 1, was $85,000. Also on that date, the balance in the Allowance for Doubtful Accounts was $2,300. Total retained earnings at the end of Year 1 was $82,700. During Year 2, $2,700 of accounts receivable were written off as uncollectible. In addition, Renue unexpectedly collected $160 of receivables that had been written off in a previous accounting period. Services provided on account during Year 2 were $219,000, and cash collections from receivables were $221,009. Uncollectible accounts expense was estimated to be 1 percent of the sales on account for the period. Required a. Organize the information in accounts under an accounting equation. b. Based on the preceding information, compute (after year-end adjustment): 1. (1) Balance of Allowance for Doubtful Accounts at December 31, Year 2. 2. (2) Balance of Accounts Receivable at December 31, Year 2. 3. (3) Net realizable value of Accounts Receivable at December 31, Year 2. c. What amount of uncollectible accounts expense will Renue Spa record for Year 2? > Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req A Req B and C Based on the preceding information, compute (after year-end adjustment): (1) Balance of Allowance for Doubtful Accounts at December 31, Year 2. (2) Balance of Accounts Receivable at December 31, Year 2. (3) Net realizable value of Accounts Receivable at December 31, Year 2. What amount of uncollectible accounts expense will Renue Spa record for Year 2? 6162630 b- Allowance for doubtful accounts $ 2,290 b- Accounts receivable $83,151 Net realizable value $78,341 3. C. Uncollectible accounts expense $ 2,190 Show less The accounts receivable balance for Renue Spa at December 31, Year 1, was $85,000. Also on that date, the balance in the Allowance for Doubtful Accounts was $2,300. Total retained earnings at the end of Year 1 was $82,700. During Year 2, $2,700 of accounts receivable were written off as uncollectible. In addition, Renue unexpectedly collected $160 of receivables that had been written off in a previous accounting period. Services provided on account during Year 2 were $219,000, and cash collections from receivables were $221,009. Uncollectible accounts expense was estimated to be 1 percent of the sales on account for the period. Required a. Organize the information in accounts under an accounting equation. b. Based on the preceding information, compute (after year-end adjustment): 1. (1) Balance of Allowance for Doubtful Accounts at December 31, Year 2. 2. (2) Balance of Accounts Receivable at December 31, Year 2. 3. (3) Net realizable value of Accounts Receivable at December 31, Year 2. c. What amount of uncollectible accounts expense will Renue Spa record for Year 2? > Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req A Req B and C Based on the preceding information, compute (after year-end adjustment): (1) Balance of Allowance for Doubtful Accounts at December 31, Year 2. (2) Balance of Accounts Receivable at December 31, Year 2. (3) Net realizable value of Accounts Receivable at December 31, Year 2. What amount of uncollectible accounts expense will Renue Spa record for Year 2? 6162630 b- Allowance for doubtful accounts $ 2,290 b- Accounts receivable $83,151 Net realizable value $78,341 3. C. Uncollectible accounts expense $ 2,190 Show less
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Survey of Accounting
ISBN: 978-1259631122
5th edition
Authors: Thomas Edmonds, Christopher Edmonds, Philip Olds, Frances McNair, Bor Yi Tsay
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