Question

rk mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completi 5 Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company's fiscal year-end. The 2017 balance sheet disclosed the following: 12.6 points Current assets: Receivables, net of allowance for uncollectible accounts of $36,eee 462,008 During 2018, credit sales were $1,780,000, cash collections from customers $1,860,000, and $41,000 in accounts receivable were written off In addlition, $3,600 was collected from a customer whose account was written offin 2017. An aging of accounts receivable at December 31, 2018, reveals the following Percentage of Year-End Receivables in Group Percent Uncollectible Age Group e-66 days 61-98 days ze 15 20 40 91-128 days Over 128 days Required: 1. Prepare summary journal entries to account for the 20 2. Prepare the year-end adjusting entry for bad debts according to each of the following situations: 18 write-offs and the collection of the receivable previously written off a. Bad debt expense is estimated to be 4% of credit sales for the year. 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 accountss 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 reported in the 2018 balance sheet? 3 Answer is not complete. Complete this question by entering your answers in the tabs belovw K Prev. 5 or9 i Next

Answer 1