Question: Gable Incorporated provides legal services During 2015 the company provides

Gable Incorporated provides legal services. During 2015, the company provides services of $500,000 on account. Of this amount, $70,000 remains uncollected at the end of the year. An aging schedule as of December 31, 2015, is provided below.

1. Calculate the allowance for uncollectible accounts.
2. Record the December 31, 2015, adjustment, assuming the balance of Allowance for Uncollectible Accounts before adjustment is $500 (debit).
3. On April 3, 2016, a customer’s account balance of $600 is written off as uncollectible. Record the write-off.
4. On July 17, 2016, the customer, whose account was written off in Requirement 3, unexpectedly pays $200 of the amount but does not expect to pay any additional amounts. Record the cashcollection.

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  • CreatedJuly 15, 2014
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