Respuesta :
Answer:
A. December 31, 2021
Dr Bad debt expense $6,000
Cr Allowance for uncollectible accounts $6,000
B. 12/31
Dr Allowance for Uncollectible accounts $5,400
Cr Account receivable $5,400
C. $24,000
Explanation:
A. Preparation of journal entry to record the adjustment for uncollectible accounts on December 31 2021
December 31, 2021
Dr Bad debt expense $6,000
Cr Allowance for uncollectible accounts $6,000
($120000-$90000*20%)
(Being to record the adjustment for uncollectible accounts)
B. Preparation of the journal entry to Record the write offs of accounts receivables in 2022
12/31
Dr Allowance for Uncollectible accounts $5,400
Cr Account receivable $5,400
(Being to Record the write offs of accounts receivables)
C. Calculation for the net realizable value of accounts receivable.
Total accounts receivable $30,000
($120,000-$90,000)
Less: Allowance for uncollectible accounts ($6,000)
Net realizable value $24,000
Therefore the net realizable value of accounts receivable will be $24,000