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Pearl E. White Orthodontist specializes in correcting misaligned teeth. During 2024, Pearl provides services on account of $585,000. Of this amount, $75,000 remains receivable at the end of the year. An aging schedule as of December 31, 2024, is provided below. Age Group Not yet due 0 to 90 days past due 91 to 180 days past due More than 180 days past due Total Amount Receivable $35,000 15,500 10,500 14,000 $75,000 Estimated Percent Uncollectible 3% 15% 20% 85% Required: 1. Calculate the allowance for uncollectible accounts. 2. Record the December 31, 2024, adjusting entry, assuming the balance of Allowance for Uncollectible Accounts before adjustment is $4,500 (credit). 3. On July 19, 2025, a customer's account balance of $7,500 is written off as uncollectible. Record the write-off. 4. On September 30, 2025, the customer whose account was written off in requirement 3 unexpectedly pays the full amount. Record the cash collection.

Pearl E. White Orthodontist specializes in correcting misaligned teeth. During 2024, Pearl provides services on account of $585,000. Of this amount, $75,000 remains receivable at the end of the year. An aging schedule as of December 31, 2024, is provided below. Age Group Not yet due 0 to 90 days past due 91 to 180 days past due More than 180 days past due Total Amount Receivable $35,000 15,500 10,500 14,000 $75,000 Estimated Percent Uncollectible 3% 15% 20% 85% Required: 1. Calculate the allowance for uncollectible accounts. 2. Record the December 31, 2024, adjusting entry, assuming the balance of Allowance for Uncollectible Accounts before adjustment is $4,500 (credit). 3. On July 19, 2025, a customer's account balance of $7,500 is written off as uncollectible. Record the write-off. 4. On September 30, 2025, the customer whose account was written off in requirement 3 unexpectedly pays the full amount. Record the cash collection.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Complete this question by entering your answers in the tabs below. 2. Record the December 31, 2024, adjusting entry, assuming the balance of Allowance for Uncollectible Accounts before adjustment is $4,500 (credit). 3. On July 19, 2025, a customer's account balance of $7,500 is written off as uncollectible. Record the write-off. 4. On September 30, 2025, the customer whose account was written off in requirement 3 unexpectedly pays the full amount. Record the cash collection. No 1 Req 1 (Note: If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) 2 3 Req 2 to 4 4 X Answer is complete but not entirely correct. Date December 31, 202 Bad Debt Expense July 19, 2025 Allowance for Uncollectible Accounts Allowance for Uncollectible Accounts Accounts Receivable September 30, 202 Accounts Receivable General Journal September 30, 202 Cash Allowance for Uncollectible Accounts Accounts Receivable < Req 1 ✓ ♥ ✔ ✓ 33 ✓ ✓ Reg 2 to 4 > Debit 30,500 X 7,500✔ 7,500 7,500✔ Credit 30,500 X 7,500✔ 7,500✔ 7,500 Show less
Transcribed Image Text:Complete this question by entering your answers in the tabs below. 2. Record the December 31, 2024, adjusting entry, assuming the balance of Allowance for Uncollectible Accounts before adjustment is $4,500 (credit). 3. On July 19, 2025, a customer's account balance of $7,500 is written off as uncollectible. Record the write-off. 4. On September 30, 2025, the customer whose account was written off in requirement 3 unexpectedly pays the full amount. Record the cash collection. No 1 Req 1 (Note: If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) 2 3 Req 2 to 4 4 X Answer is complete but not entirely correct. Date December 31, 202 Bad Debt Expense July 19, 2025 Allowance for Uncollectible Accounts Allowance for Uncollectible Accounts Accounts Receivable September 30, 202 Accounts Receivable General Journal September 30, 202 Cash Allowance for Uncollectible Accounts Accounts Receivable < Req 1 ✓ ♥ ✔ ✓ 33 ✓ ✓ Reg 2 to 4 > Debit 30,500 X 7,500✔ 7,500 7,500✔ Credit 30,500 X 7,500✔ 7,500✔ 7,500 Show less
Problem 5-4A (Algo) Record transactions related to uncollectible accounts (LO5-4, 5-5) Pearl E. White Orthodontist specializes in correcting misaligned teeth. During 2024, Pearl provides services on account of $585,000. Of this amount, $75,000 remains receivable at the end of the year. An aging schedule as of December 31, 2024, is provided below. Age Group Not yet due to 90 days past due 91 to 180 days past due More than 180 days. past due Total Amount Receivable $35,000 15,500 10,500 14,000 $75,000 Estimated Percent Uncollectible 3% 15% 20% 85% Required: 1. Calculate the allowance for uncollectible accounts. 2. Record the December 31, 2024, adjusting entry, assuming the balance of Allowance for Uncollectible Accounts before adjustment is $4,500 (credit). 3. On July 19, 2025, a customer's account balance of $7,500 is written off as uncollectible. Record the write-off. 4. On September 30, 2025, the customer whose account was written off in requirement 3 unexpectedly pays the full amount. Record the cash collection.
Transcribed Image Text:Problem 5-4A (Algo) Record transactions related to uncollectible accounts (LO5-4, 5-5) Pearl E. White Orthodontist specializes in correcting misaligned teeth. During 2024, Pearl provides services on account of $585,000. Of this amount, $75,000 remains receivable at the end of the year. An aging schedule as of December 31, 2024, is provided below. Age Group Not yet due to 90 days past due 91 to 180 days past due More than 180 days. past due Total Amount Receivable $35,000 15,500 10,500 14,000 $75,000 Estimated Percent Uncollectible 3% 15% 20% 85% Required: 1. Calculate the allowance for uncollectible accounts. 2. Record the December 31, 2024, adjusting entry, assuming the balance of Allowance for Uncollectible Accounts before adjustment is $4,500 (credit). 3. On July 19, 2025, a customer's account balance of $7,500 is written off as uncollectible. Record the write-off. 4. On September 30, 2025, the customer whose account was written off in requirement 3 unexpectedly pays the full amount. Record the cash collection.
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