Exercise 7-10 (Algo) Establish an allowance and account for bad debts [LO7-5, 7-6] Pincus Associates uses the allowance method to account for bad debts. During 2021, its first year of operations, Pincus provided a total of $236,000 of services on account. In 2021, the company wrote off uncollectible accounts of $9,500. By the end of 2021, cas collections on accounts receivable totaled $199,500. Pincus estimates that 5% of the accounts receivable balance at 12/31/2021 wi prove uncollectible. Required: 1. & 2. What journal entry did Pincus record to write off uncollectible accounts during 2021 and to recognize bad debt expense for 2021? (If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld.)

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Chapter1: Financial Statements And Business Decisions
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Exercise 7-10 (Algo) Establish an allowance and account for bad debts [LO7-5, 7-6]
Pincus Associates uses the allowance method to account for bad debts. During 2021, its first year of operations, Pincus provided a
total of $236,000 of services on account. In 2021, the company wrote off uncollectible accounts of $9,500. By the end of 2021, cash
collections on accounts receivable totaled $199,500. Pincus estimates that 5% of the accounts receivable balance at 12/31/2021 will
prove uncollectible.
Required:
1. & 2. What journal entry did Pincus record to write off uncollectible accounts during 2021 and to recognize bad debt expense for
2021? (If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld.)
View transaction list
Journal entry worksheet
<
1 2
Record to recognize bad debt expense for 2021.
Note: Enter debits before credits.
Event
2
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
Transcribed Image Text:Exercise 7-10 (Algo) Establish an allowance and account for bad debts [LO7-5, 7-6] Pincus Associates uses the allowance method to account for bad debts. During 2021, its first year of operations, Pincus provided a total of $236,000 of services on account. In 2021, the company wrote off uncollectible accounts of $9,500. By the end of 2021, cash collections on accounts receivable totaled $199,500. Pincus estimates that 5% of the accounts receivable balance at 12/31/2021 will prove uncollectible. Required: 1. & 2. What journal entry did Pincus record to write off uncollectible accounts during 2021 and to recognize bad debt expense for 2021? (If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld.) View transaction list Journal entry worksheet < 1 2 Record to recognize bad debt expense for 2021. Note: Enter debits before credits. Event 2 Record entry General Journal Clear entry Debit Credit View general journal
Exercise 7-10 (Algo) Establish an allowance and account for bad debts [LO7-5, 7-6]
Pincus Associates uses the allowance method to account for bad debts. During 2021, its first year of operations, Pincus provided a
total of $236,000 of services on account. In 2021, the company wrote off uncollectible accounts of $9,500. By the end of 2021, cash
collections on accounts receivable totaled $199,500. Pincus estimates that 5% of the accounts receivable balance at 12/31/2021 will
prove uncollectible.
Required:
1. & 2. What journal entry did Pincus record to write off uncollectible accounts during 2021 and to recognize bad debt expense for
2021? (If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld.)
View transaction list
Journal entry worksheet
<
1 2
Record the write-offs of allowance for uncollectible accounts during 2021.
Note: Enter debits before credits.
Event
1
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
Transcribed Image Text:Exercise 7-10 (Algo) Establish an allowance and account for bad debts [LO7-5, 7-6] Pincus Associates uses the allowance method to account for bad debts. During 2021, its first year of operations, Pincus provided a total of $236,000 of services on account. In 2021, the company wrote off uncollectible accounts of $9,500. By the end of 2021, cash collections on accounts receivable totaled $199,500. Pincus estimates that 5% of the accounts receivable balance at 12/31/2021 will prove uncollectible. Required: 1. & 2. What journal entry did Pincus record to write off uncollectible accounts during 2021 and to recognize bad debt expense for 2021? (If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld.) View transaction list Journal entry worksheet < 1 2 Record the write-offs of allowance for uncollectible accounts during 2021. Note: Enter debits before credits. Event 1 Record entry General Journal Clear entry Debit Credit View general journal
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