Fraud Investigators Inc. operates a fraud detection service.

Required:

1. Prepare journal entries for each transaction below.

a. On March 31, 10 customers were billed for detection services totaling $25,000.

b. On October 31, a customer balance of $1,500 from a prior year was determined to be uncollectible 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, − for decrease, and NE for no effect) of each transaction.

Transcribed Image Text:

Transaction Net Receivables Net Sales Income from Operations a. b. C. d.