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In 2019 operations started with a balance in Accounts Receivable of $60,000 and a credit balance in Allowance for Doubtful Accounts of $5,000. The company has $400,000 in sales on credit during the year and collected cash of $360,000.
Question A: Make a journal entry if uncollectible accounts are predicted at 2% of credit sales for the year.
Question B: What is the balance in the Allowance for Doubtful Accounts at the end of Year 2 after making the entry in part A.?
Question C: Make a journal entry if uncollectible accounts are predicted to be 10% of the final ending accounts receivables balance?
Question D: Display the balance sheet presentation for accounts receivable and other related accounts after making the entry in part C
Question E: After writing off an account of $4,000 as uncollectible, the company receives a payment of cash in full. What entries would the company make as a result of this collection?
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