A company started the year with accounts receivable of $30,000 and an allowance for uncollectible accounts of $(3,500)

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A company started the year with accounts receivable of $30,000 and an allowance for uncollectible accounts of $(3,500). During the year, sales (all on account) were $90,000 and cash collections for sales amounted to $82,000. Also, $3,400 worth of uncollectible accounts were specifically identified and written off. Then, at year end, the company estimated that 2% of ending accounts receivable would be uncollectible

Requirements

1. Record the transactions (including beginning balances) into the accounting equation

2. What amount will be shown on the year-end income statement for bad debts expense?

3. What is the balance in the allowance for uncollectible accounts after all adjustments have been made?

Reauirement 2. What amount will be shown on the vear-end income statement for bad debts expense?