Show transcribed image text nse is recorded only at December products to customers on a credit basis. An adjusting entry for bad debt expen tble following: S, the company's fiscal year-end. The 2017 balance sheet disclosed the Current assets: 5 107-6 Receivables, net of allowance for uncollectible acc ounts of $30,000 $432,000 2018, credit sales were $1.750,000, cash collections from customers S1.830.000. 0, cash collections from customers $1,830,000, and $35,000 in accounts receivable were written off. In addition, $3,000 was collected from a customer 2017. An aging of accounts receivable at December 31, 2018, reveals the followng Percentage of Year-End Percent Age Group 0-60 days 61-90 days 91-120 days Over 120 days Receivables in GroupUnco 65% 20 10 15 25 40 Required 1. Prepare summary journal entries to account for the 2018 write-offs and the collection of the reccivable previ- ously written off. 2. Prepare the year-end adjusting entry for bad debts according to each of the following situations: Bad debt expense is estimated to be 3% of credit sales for the year. a. b. Bad debt expense is estimated by computing net realizable value of the receivables. The allowance for uncollectible accounts is estimated to be 10% of the year-end balance in accounts receivable. c. Bad debt expense is estimated by computing net realizable value of the receivables. The allowance for uncollectible accounts is determined by an aging of accounts receivable. 3. For situations (a)-(c) in requirement 2 above, what would be the net amount of accounts receivable reporte in the 2018 balance sheet?
nse is recorded only at December products to customers on a credit basis. An adjusting entry for bad debt expen tble following: S, the company's fiscal year-end. The 2017 balance sheet disclosed the Current assets: 5 107-6 Receivables, net of allowance for uncollectible acc ounts of $30,000 $432,000 2018, credit sales were $1.750,000, cash collections from customers S1.830.000. 0, cash collections from customers $1,830,000, and $35,000 in accounts receivable were written off. In addition, $3,000 was collected from a customer 2017. An aging of accounts receivable at December 31, 2018, reveals the followng Percentage of Year-End Percent Age Group 0-60 days 61-90 days 91-120 days Over 120 days Receivables in GroupUnco 65% 20 10 15 25 40 Required 1. Prepare summary journal entries to account for the 2018 write-offs and the collection of the reccivable previ- ously written off. 2. Prepare the year-end adjusting entry for bad debts according to each of the following situations: Bad debt expense is estimated to be 3% of credit sales for the year. a. b. Bad debt expense is estimated by computing net realizable value of the receivables. The allowance for uncollectible accounts is estimated to be 10% of the year-end balance in accounts receivable. c. Bad debt expense is estimated by computing net realizable value of the receivables. The allowance for uncollectible accounts is determined by an aging of accounts receivable. 3. For situations (a)-(c) in requirement 2 above, what would be the net amount of accounts receivable reporte in the 2018 balance sheet?
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