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According to the December 31, 2020, year end balance sheet, there were $657,000 in outstanding Accounts Receivable and a credit balance in Allowance for Doubtful Account balance of $35,400. During the 2021 fiscal year, the company reported the following:

1. service revenue of $3,150,000 billed to customers on account

2. $3,370,000 in collections from customers

3. wrote off $47,600 in outstanding accounts receivable

4. collected $6,500 of previously written off accounts receivable (in addition to the collections reported in part 3).

5. The company uses the percentage of receivables to estimate bad debts expense. Based on experience, uncollectible accounts are expected to be 7% of accounts receivable.

Instructions: Answer the following questions using the drop-down menus or filling in the requested amounts (nearest dollar without dollar sign ($) or comma, e.g. 15000):

For entry #3, you would debit ______Answer: Bad debt expense, allowance for doubtful accounts, cash, accounts receivable, accounts payable, Bad accounts write-off, and credit______ Answer: Bad accounts write-of cash accounts receivable allowance for doubtful accountsBad debt expense accounts payable

For entry #4, your first entry would debit ______Answer: CashAllowance for doubtful accounts account receivableBad accounts write-off bad debt expense accounts playable notes receivable and credit______ Answer: Bad accounts write-off accounts receivable accounts playable notes receivable allowance for doubtful accountsBad debt expense

For entry #4, your second entry would debit______ Answer:Bad accounts write-off Notes receivable bad debt expense accounts payableCashAccounts receivable allowance for doubtful accounts and credit______ Answer:Accounts payableCashAccounts receivable allowance for doubtful accountsBad debt expensed accounts write-off

For your year-end adjusting entry on December 31, 2021, you would debit______ Answer:Allowance for doubtful accounts bad accounts write-off accounts payableCashBad debt expense accounts receivable and credit______ Answer:Bad accounts write-off accounts receivable allowance for doubtful accounts accounts payableBad debt expense cash for (dollars): ________

After the current years year end adjusting entries have been made, enter the balances for the following accounts (nearest dollar without dollar sign ($) or comma, e.g. 15000):

A. Accounts receivable: _________

B. Allowance for doubtful accounts (dollars): ________

C. Net accounts receivable (dollars): ________

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