Question

During 2021, its first year of operations, Pave Construction provides services on account of $152,000. By the end of 2021, cash collections on these accounts total $106,000. Pave estimates that 30% of the uncollected accounts will be uncollectible. In 2022, the company writes off uncollectible accounts of $12,420. 

Required:

 1. Record the adjusting entry for uncollectible accounts on December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) 

 2-a. Record the write-off of accounts receivable in 2022. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) 

 2-b. Calculate the balance of Allowance for Uncollectible Accounts at the end of 2022 (before adjustment in 2022). 

 3.a. Assume the same facts as above but assume actual write-offs in 2022 were $18,630. Record the write-off of accounts receivable in 2022.

3-b. Assume the same facts as above but assume actual write-offs in 2022 were $18,630. Calculate the balance of Allowance for Uncollectible Accounts at the end of 2022 (before adjustment in 2022). 

Answer 1

Answer to 1 :
Date	General Jounral	Debit	Credit
December 31, 2021	Uncollectible Accounts expense ..Dr	13,800
	To Allowance for Uncollectible accounts		13,800
Answer to 2-a :
Date	General Jounral	Debit	Credit
December 31, 2021	Allowance for Uncollectible accounts ..Dr	12,420
	To Account Receivables		12,420
Answer to 2-b :
Beginning Balance in 2022	13,800
Less : write-off in 2022	-12,420
Ending Balance in 2022	1,380
Answer to 3-a :
Date	General Jounral	Debit	Credit
December 31, 2021	Allowance for Uncollectible accounts ..Dr	13,800
	Uncollectible Accounts expense ..Dr	4,830
	To Account Receivables		18,630
Answer to 3-b :
Beginning Balance in 2022	13,800
Less : write-off in 2022	-13,800
Ending Balance in 2022	-