Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the accounts receivable balance for renue spa at d

The accounts receivable balance for Renue Spa at December 31, Year 1, was $82,000. Also...

70.2K

Verified Solution

Question

Accounting

The accounts receivable balance for Renue Spa at December 31, Year 1, was $82,000. Also on that date, the balance in the Allowance for Doubtful Accounts was $2,600. Total retained earnings at the end of Year 1 was $79,400. During Year 2, $2,300 of accounts receivable were written off as uncollectible. In addition, Renue unexpectedly collected $160 of receivables that had been written off in a previous accounting period. Services provided on account during Year 2 were $212,000, and cash collections from receivables were $213,945. Uncollectible accounts expense was estimated to be 1 percent of the sales on account for the period.

Required

  1. Organize the information in accounts under an accounting equation.
  2. 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 Spa record for Year 2?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students