Answer:
Step-by-step explanation:
1. Adjusting journal entry for December 31, 2021:
Debit: Bad Debt Expense $9,150
Credit: Allowance for Uncollectible Accounts $9,150
Calculation:
$74,000 x 15% = $11,100
$11,100 - $5,500 (balance of Allowance for Uncollectible Accounts before adjustment) = $5,600
$5,600 + $3,550 (Bad Debt Expense balance before adjustment) = $9,150
2. Write-off on April 3, 2022:
Debit: Allowance for Uncollectible Accounts $600
Credit: Accounts Receivable $600
3. Cash collection on July 17, 2022:
Debit: Cash $200
Credit: Accounts Receivable $200