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The accounts receivable balance for Renue Spa at December 31, Year 1, was $85,000. Also...

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Accounting

The accounts receivable balance for Renue Spa at December 31, Year 1, was $85,000. Also on that date, the balance in the Allowance for Doubtful Accounts was $2,600. During Year 2, $2,500 of accounts receivable were written off as uncollectible. In addition, Renue unexpectedly collected $120 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
a. Record the transactions in general journal form and post to T-accounts.
b. Based on the preceding information compute (after year-to-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.
c. What amount of uncollectible accounts expense will Renue report for Year 2?

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