I cannot solve for the Uncollectible Account Expense in Year 2. Please Help! LEACH INC.Accounting Equation for the Year 2AssetsEquityAccounting Titles for RetainedEarningsNRVEventLiabilitiesCommonRetainedCashAccountsReceivable+StockEarningsBal.77,0008,55010,00075,5501.+Service revenueService revenue2.88,000++88,0003.32,00032,0004.81,000(81,000)(65,000)Salaries expense5.(65,000)6.Uncollectible accounts expense++Bal.125,00015,55010,000130,550++++OOO OI| ||LC Leach Inc. experienced the following events for the first two years of its operations:Year 1:1. Issued $10,000 of common stock for cash.2. Provided $78,000 of services on account.3. Provided $36,000 of services and received cash.4. Collected $69,000 cash from accounts receivable.5. Paid $38,000 of salaries expense for the year.6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 5 percentof the ending accounts receivable balance will be uncollectible.Year 2:1. Wrote off an uncollectible account for $650.2. Provided $88,000 of services on account.3. Provided $32,000 of services and collected cash.4. Collected $81,000 cash from accounts receivable.5. Paid $65,000 of salaries expense for the year.6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent of theending accounts receivable balance will be uncollectible.

The Uncollectible Account Expense in Year 2 as,

Answered: Stock Earning 10,000 O 75,55 + + 88,00…

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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I'm needing help on these questions for my Homework. Can anyone please help me?
background info: Green checkmark means that entry is correct, red is wrong. There is only supposed to be a total of 19 entries. look at 1 picture with the complete journal and adjust to fit the allowance method to go into the second table with green and red corrections. The first entry....you are removing the account so you have to remove the allowance and related receivable (2 parts) The second entry...you want to record the cash received, the removal of the allowance and related receivable (3 parts) The third entry...recording a credit sales (2 parts) The fourth entry...setting up receivable and the allowance (2 parts) The fifth entry...record collection of a previously recorded credit sale (2 parts) The sixth entry...record collection of a previously recorded credit sale (2 parts) The seventh entry...adjusting the allowance by reducing the allowance and reducing 5 customer receivable accounts (6 parts) 1. Finalize the journal entries shown on the Fan-Tastic Sports Gear Inc. panel…
5. Jack's lawn care used the direct write-off method for accounting for uncollectible accounts. The company writes off $500 on Jane Doe's account. The journal entry to record this will include a debit of $500 to which account?
When writing off a customer's account using the allowance method: A. Bad Debts Expense is increased with a debit B. The customer's account is decreased with a debit C. The Allowance for Bad Debts account is decreased with a debit D. Bad Debts Expense is increased with a credit
Want the Answer please without any fail
Please see below. I really need help with this asap. Please include relevant terms and dates as needed.
Apologies, my errors: Party S paid $500 deposit (not $100) Party J is responsible for the entire $1,528.95 in unpaid rent/late fees. I await your response. Thank you.
Under the allowance method, if a customer makes payment on a receivable that has already been written off, the company needs to reverse the write-off to the Allowance for Bad Debts account. True False 00
FOR YOU AND THE CLASS: What is the journal entry to record Bad debts expense under the allowance method. In other words ....what account would be debited and what account would be credited? Reply
Using the Allowance method supply the journal entries to bring back the written off Account Receivable and the payment for it. Direct Write Off Method Allowance Method Bad debt expense $500 Allowance for doubtful accounts $500 Accounts Receivable $500 Accounts Receivable $500
if your supervisor tells you to change the aging category of a large account from over 120 days to current status and prepare a new invoice to the customer with the revised date that agrees with this new category this will change the required allowance from for uncollectible accounts from $180, 000 to $135,000. How do you think this misstatement of funds will impact your income statement and your balance sheet?

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