Question

On March 12, Medical Waste Services provides services on account to Grace Hospital for $10,200, terms 4/10, n/30. Grace pays for those services on March 20.  

Required:

For Medical Waste Services, record the service on account on March 12 and the collection of cash on March 20. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

2.

During 2021, its first year of operations, Pave Construction provides services on account of $120,000. By the end of 2021, cash collections on these accounts total $90,000. Pave estimates that 20% of the uncollected accounts will be uncollectible. In 2022, the company writes off uncollectible accounts of $5,400.

Required:

1. Record the adjusting entry for uncollectible accounts on December 31, 2021.

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 $8,100. 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.)

3-b. Assume the same facts as above but assume actual write-offs in 2022 were $8,100. Calculate the balance of Allowance for Uncollectible Accounts at the end of 2022 (before adjustment in 2022).

  

Answer 1

1.)

Discount allowed because cash received within discount period.

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2.)

1. Record the adjusting entry for uncollectible accounts on December 31, 2021.

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2-a. Record the write-off of accounts receivable in 2022

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

Beginning Balance	$6,000
Less: Write off	($5,400)
Ending Balance 2022	$600

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3-a. Assume the same facts as above but assume actual write-offs in 2022 were $8,100. 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 $8,100. Calculate the balance of Allowance for Uncollectible Accounts at the end of 2022 (before adjustment in 2022).

Beginning Balance	$6,000
Less: Write off	($8,100)
Ending Balance 2022 [Debit]	($2,100)