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Exercise 7-6A Effect of recovering a receivable previously written off LO 7-1 The accounts receivable balance...

Exercise 7-6A Effect of recovering a receivable previously written off LO 7-1

The accounts receivable balance for Renue Spa at December 31, Year 1, was $83,000. Also on that date, the balance in the Allowance for Doubtful Accounts was $2,600. During Year 2, $2,100 of accounts receivable were written off as uncollectible. In addition, Renue unexpectedly collected $150 of receivables that had been written off in a previous accounting period. Services provided on account during Year 2 were $215,000, and cash collections from receivables were $216,972. Uncollectible accounts expense was estimated to be 1 percent of the sales on account for the period.

Required:
a. Record the transactions in general journal form and post to T-accounts.

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