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Fields Incorporated had the following line item on their December 31, 2020 Balance Sheet: Accounts...

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Accounting

Fields Incorporated had the following line item on their December 31, 2020 Balance Sheet: Accounts Receivable, net of Allowance for Uncollectible Accounts $3,100 $14,400

During the 2021 year, the accounting department found $7,000 of accounts receivable that was deemed to be uncollectible and thus written off. While completing this process, a payment of $700 was received from a customer, Sally Teason, whose account had been written off during the 2019 year.

Fields had sales for the 2021 year in the amount of $1,250,000 and collected cash from customers in the amount of $1,200,250.

Required:

1) Fields Incorporated uses the Allowance method and the Income Statement approach (2% of Net Sales) to estimate bad debt expense. Prepare all necessary journal entries to record for Doubtful Accounts

2.) What would be reported on the 2021 Balance Sheet regarding Accounts Receivables and the Allowance accounts?

3.)What amount would be reported on the 2021 Income Statement for Bad Debt Expense?

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