Academic Dishonesty Investigations Ltd. operates a plagiarism detection service for universities and colleges.
Required:
1. Prepare journal entries for each transaction below.
a. On March 31, 10 customers were billed for detection services totalling $25,000.
b. On October 31, a customer balance of $1,500 from a prior year was determined to be uncollectable and was written off. c. On December 15, a customer paid an old balance of $900, which had been written off in a prior year. d. On December 31, $500 of bad debts were estimated and recorded for the year.
2. Complete the following table, indicating the amount and effect (+ for increase, ˆ’ for decrease, and NE for no effect) of each transaction. Ignore income taxes.

Transcribed Image Text:

Income from Operations Transaction Net Receivables Net Sales (a) (b) (c) (d)