Please help me in this question. Please Solve accordingly and write answers in t
ID: 2337916 • Letter: P
Question
Please help me in this question. Please Solve accordingly and write answers in table form just as in question. Thanks.
(Question 1i)
(Question 1ii)
The accounts receivable balance for Renue Spa at December 31, 2017, was $80,000. Also on that date, the balance in the Allowance for Doubtful Accounts was $2,900. During 2018, $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 2018 were $222,000, and cash collections from receivables were $224,037. Uncollectible accounts expense was estimated to be 1 percent of the sales on account for the period Required a. Organize the information in accounts under an accounting equation. b. Based on the preceding information, compute (after year-end adjustment): 1 (1) Balance of Allowance for Doubtful Accounts at December 31, 2018 2. (2) Balance of Accounts Receivable at December 31, 2018. 3. (3) Net realizable value of Accounts Receivable at December 31, 2018. c. What amount of uncollectible accounts expense will Renue Spa for 2018? Complete this question by entering your answers in the tabs belowExplanation / Answer
(1i)
Accounting Equation :-
Cash
+
A/c Receivable
-
Allowance
=
Liabilities
+
Equity/Retained Earnings
Account Titles for Retained Earnings
Bal.
+
80000
-
2900
=
+
77100
1
+
(2500)
-
(2500)
=
+
2a
+
120
-
120
=
+
2b
120
+
(120)
-
=
+
3
+
222000
-
=
+
222000
Service Revenue
4
224037
+
(224037)
-
=
+
5
+
-
2220
=
+
(2220)
Uncollectible A/c Exp
Bal.
224157
+
75463
-
2740
=
+
296880
(1b & c)
B1
Allowance for Doubtful Accounts
2740
B2
Accounts Receivable
75463
B3
Net Realisable value
72723
C
Uncollectible accounts Exp
2220
(1ii)
A
Accounts Receivable (262100 – 248995)
13105
B
Allowance for Doubtful Accounts
131
C
Uncollectible accounts Exp
1099
D
Net Realisable value
12974
Cash
+
A/c Receivable
-
Allowance
=
Liabilities
+
Equity/Retained Earnings
Account Titles for Retained Earnings
Bal.
+
80000
-
2900
=
+
77100
1
+
(2500)
-
(2500)
=
+
2a
+
120
-
120
=
+
2b
120
+
(120)
-
=
+
3
+
222000
-
=
+
222000
Service Revenue
4
224037
+
(224037)
-
=
+
5
+
-
2220
=
+
(2220)
Uncollectible A/c Exp
Bal.
224157
+
75463
-
2740
=
+
296880