At the start of 20x4, Colonial Designs' Allowance for Uncollectibles balance is €120,000 . During 20x4, Colonial Designs' credit sales were €5,000,000; of this amount, it expected 2% will become uncollectible. During 20x4, Colonial Designs wrote off €70,000 of accounts receivable. At the end of 20x4, Colonial Designs estimates, based on an aging of accounts, that the ending balance in the
Allowance for Uncollectibles should be €130,000 .
a. Allowance for Uncollectibles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000
Accounts Receivable, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000
b. Bad Debt Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000
Accounts Receivable, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000
c. Allowance for Uncollectibles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000
Bad Debt Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000
d. Bad Debt Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000
Allowance for Uncollectibles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000
e. Allowance for Uncollectibles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000
Accounts Receivable, gross. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000
D
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