GP3, Inc. estimated uncollectible accounts receivable at December 31, 2016 at $13,488, based on estimates on various ages of receivables and before learning of the bankruptcy of one of its customers. The customer owed $5,360, and the legal department has estimated costs to collect the balance owed by this customer at $8,000. The gross receivables balance on December 31, 2016 after write-offs is $337,200, and the allowance of uncollectible accounts balance was $14,480 at December 31, 2015. At December 12, 2016, the company wrote off $6,800 other accounts deemed uncollectible.
A. How would the legal department advise GP3, Inc. to handle the collection of the $5,360?
B. Draw a t-account for Allowance for Uncollectible Accounts and post all 2016 amounts to it, assuming that both the $6,800 and $5,360 have been written off.
C. What is the effect of the $6,800 write off on gross and net accounts receivable?

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The Answer of GP3, Inc. estimated uncollectible accounts receivable at December 31, 2016 at $13,488, based on estimates on various ages of receivables and before learning of the bankruptcy of one of its customers. The customer owed $5,360, and the legal department has estimated costs to collect the balance owed by this customer at $8,000. The gross receivables balance on December 31, 2016 after write-offs is $337,200, and the allowance of uncollectible accounts balance was $14,480 at December 31, 2015. At December 12, 2016, the company wrote off $6,800 other accounts deemed uncollectible.
A. How would the legal department advise GP3, Inc. to handle the collection of the $5,360?
B. Draw a t-account for Allowance for Uncollectible Accounts and post all 2016 amounts to it, assuming that both the $6,800 and $5,360 have been written off.
C. What is the effect of the $6,800 write off on gross and net accounts receivable?

GP3, Inc Estimated Uncollectible Accounts Receivable at December 31, 2016 at at $13,488