During 2024, its first year of operations, Platform Construction provides services on account of $140,000. By the end of 2024, cash collections on these accounts total $100,000. Platform estimates that 30% of the uncollected accounts will be uncollectible. In 2025, the company writes off uncollectible accounts of $10,800. Required: 1. Record the adjusting entry for uncollectible accounts on December 31, 2024.2-a. Record the write-off of accounts receivable in 2025.2-b. Calculate the balance of Allowance for Uncollectible Accounts at the end of 2025 (before adjustment in 2025).3-a. Assume the same facts as above but assume actual write-offs in 2025 were $16,200. Record the write-off of accounts receivable in 2025.3-b. Calculate the balance of Allowance for Uncollectible Accounts at the end of 2025 (before adjustment in 2025).

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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During 2024, its first year of operations, Platform Construction provides services on account of $140,000. By the end of 2024, cash collections on these accounts total $100,000. Platform estimates that 30% of the uncollected accounts will be uncollectible. In 2025, the company writes off uncollectible accounts of $10,800.


Required:

1. Record the adjusting entry for uncollectible accounts on December 31, 2024.
2-a. Record the write-off of accounts receivable in 2025.
2-b. Calculate the balance of Allowance for Uncollectible Accounts at the end of 2025 (before adjustment in 2025).
3-a. Assume the same facts as above but assume actual write-offs in 2025 were $16,200. Record the write-off of accounts receivable in 2025.
3-b. Calculate the balance of Allowance for Uncollectible Accounts at the end of 2025 (before adjustment in 2025).

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