Reference no: EM133133273
Question - During 2024, its first year of operations, Laminate Construction provides services on account of $136,000. By the end of 2024, cash collections on these accounts total $98,000. Laminate estimates that 30% of the uncollected accounts will be uncollectible. In 2025, the company writes off uncollectible accounts of $10,260.
Required -
1. Record the adjusting entry for uncollectible accounts on December 31, 2024.
2-a. Record the write-off of accounts receivable in 2025.
2-b. Calculate the balance of Allowance for Uncollectible Accounts at the end of 2025 (before adjustment in 2025).
3-a. Assume the same facts as above but assume actual write-offs in 2025 were $15,390. Record the write-off of accounts receivable in 2025.
3-b. Calculate the balance of Allowance for Uncollectible Accounts at the end of 2025 (before adjustment in 2025).