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Renue Spa had the following balances at December 31, Year 2: Cash of $11,000, Accounts...

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Accounting

Renue Spa had the following balances at December 31, Year 2: Cash of $11,000, Accounts Receivable of $85,000, Allowance for Doubtful Accounts of $2,200, and Retained Earnings of $93,800. During Year 3, the following events occurred:
$2,700 of accounts receivable were written off as uncollectible.
The company unexpectedly collected $140 of receivables that had been written off in a previous accounting period.
Services provided on account during Year 3 were $212,000.
Cash collections from receivables were $213,945.
Uncollectible accounts expense was estimated to be 1 percent of the sales on account for the period.
Required:
Organize the transaction data in accounts under an accounting equation.
Based on the preceding information, compute (after year-end adjustment):
(1) Balance of Allowance for Doubtful Accounts at December 31, Year 3.
(2) Balance of Accounts Receivable at December 31, Year 3
(3) Net realizable value of Accounts Receivable at December 31, Year 3.
What amount of uncollectible accounts expense will Renue Spa have for Year 3?
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