Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for…

Raintree Cosmetic Company sells its products to customers on a
credit basis. An adjusting entry for bad debt expense is recorded
only at December 31, the company’s fiscal year-end. The 2020
balance sheet disclosed the following:

Current assets:

Receivables, net of allowance for uncollectible accounts of
$30,000

$432,000

During 2021, credit sales were $1,750,000, cash collections from
customers $1,830,000, and $35,000 in accounts receivable were
written off. In addition, $3,000 was collected from a customer
whose account was written off in 2020. An aging of accounts
receivable at December 31, 2021, reveals the following:

Age Group

Percentage of Year-End
Receivables in Group

Percent
Uncollectible

0–60 days

65%

4%

61–90 days

20

15

91–120 days

10

25

Over 120 days

  5

40

Required:

Prepare summary journal entries to account for the 2021
write-offs and the collection of the receivable previously written
off.
Prepare the year-end adjusting entry for bad debts according to
each of the following situations:

Bad debt expense is estimated to be 3% of credit sales for the
year.
Bad debt expense is estimated by adjusting the allowance for
uncollectible accounts to the balance that reduces the carrying
value of accounts receivable to the amount of cash expected to be
collected. The allowance for uncollectible accounts is estimated to
be 10% of the year-end balance in accounts receivable.
Bad debt expense is estimated by adjusting the allowance for
uncollectible accounts to the balance that reduces the carrying
value of accounts receivable to the amount of cash expected to be
collected. The allowance for uncollectible accounts is determined
by an aging of accounts receivable.

For situations (a)–(c) in requirement 2 above, what would be
the net amount of accounts receivable reported in the 2021 balance
sheet?