The accounts receivable balance for Renue Spa at December 31, Year 1, was $89,000. Also on that date, the balance in the Allowance for Doubtful Accounts was $2,300. During Year 2, $2,300 of accounts receivable were written off as uncollectible. In addition, Renue unexpectedly collected $100 of receivables that had been written off in a previous accounting period. Services provided on account during Year 2 were $214,000, and cash collections from receivables were $215,963. Uncollectible accounts expense was estimated to be 1 percent of the sales on account for the period.   Required Record the transactions in general journal form and post to T-accounts. Based on the preceding information, compute (after year-end adjustment): 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 report for Year 2?   Could you take a look at the t-accounts,general jounals and help me if it is not correct pleae. Could you  help me to answer the following questions as well plese ? 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 report for Year 2?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The accounts receivable balance for Renue Spa at December 31, Year 1, was $89,000. Also on that date, the balance in the Allowance for Doubtful Accounts was $2,300. During Year 2, $2,300 of accounts receivable were written off as uncollectible. In addition, Renue unexpectedly collected $100 of receivables that had been written off in a previous accounting period. Services provided on account during Year 2 were $214,000, and cash collections from receivables were $215,963. Uncollectible accounts expense was estimated to be 1 percent of the sales on account for the period.

 
Required

  1. Record the transactions in general journal form and post to T-accounts.
  2. Based on the preceding information, compute (after year-end adjustment):
  3. 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. 
  1.  What amount of uncollectible accounts expense will Renue report for Year 2?  

Could you take a look at the t-accounts,general jounals and help me if it is not correct pleae.

Could you  help me to answer the following questions as well plese ?

  1. 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.
       
  1. What amount of uncollectible accounts expense will Renue report for Year 2?
No
A
B
C
D
E
F
Transaction
1.
2a.
2b.
3.
4.
5.
Allowance for doubtful accounts
Accounts receivable
Accounts receivable
Allowance for doubtful accounts
Cash
Accounts receivable
Accounts receivable
Service revenue
General Journal
Cash
Accounts receivable
Uncollectible accounts expense
Allowance for doubtful accounts
Debit
2,300
100
100
214,000
215,963
2,140
Credit
2,300
100
100
214,000
215,963
2,140
Transcribed Image Text:No A B C D E F Transaction 1. 2a. 2b. 3. 4. 5. Allowance for doubtful accounts Accounts receivable Accounts receivable Allowance for doubtful accounts Cash Accounts receivable Accounts receivable Service revenue General Journal Cash Accounts receivable Uncollectible accounts expense Allowance for doubtful accounts Debit 2,300 100 100 214,000 215,963 2,140 Credit 2,300 100 100 214,000 215,963 2,140
Post the transactions to T-accounts.
Beginning Balance
2b.
3.
Ending Balance
Beginning Balance
Ending Balance
Beginning Balance
Ending Balance
Cash (partial)
89,000
100
214,000
215,963
516,663
Accounts Receivable
89,000
100
214,000
84,737
2,300 1.
100
2,300
100
215,963
Allowance for Doubtful Accounts
Beginning Balance
Ending Balance
Beginning Balance
Ending Balance
Service Revenue
Uncollectible Accounts Expense
2,140
2,140
Transcribed Image Text:Post the transactions to T-accounts. Beginning Balance 2b. 3. Ending Balance Beginning Balance Ending Balance Beginning Balance Ending Balance Cash (partial) 89,000 100 214,000 215,963 516,663 Accounts Receivable 89,000 100 214,000 84,737 2,300 1. 100 2,300 100 215,963 Allowance for Doubtful Accounts Beginning Balance Ending Balance Beginning Balance Ending Balance Service Revenue Uncollectible Accounts Expense 2,140 2,140
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