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Pearl E. White Orthodontist specializes in correcting misaligned teeth. During 2015, Pearl provides services on account of $590,000. Of this amount, $80,000 remains receivable at the end of the year. An aging schedule as of December 31, 2015, is provided below.
Pearl E. White Orthodontist specializes in correcting misaligned teeth. During
Required:
1. Calculate the allowance for uncollectible accounts.
2. Record the December 31, 2015, adjustment, assuming the balance of Allowance for Uncollectible Accounts before adjustment is $5,000 (credit).
3. On July 19, 2016, a customer€™s account balance of $8,000 is written off as uncollectible. Record the write-off.
4. On September 30, 2016, the customer whose account was written off in Requirement 3 unexpectedly pays the full amount. Record the cashcollection.
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