At December 31, 2016, Canning Travel Agency has an Accounts Receivable balance of $89,000. Allowance for Doubtful

Question:

At December 31, 2016, Canning Travel Agency has an Accounts Receivable balance of $89,000. Allowance for Doubtful Accounts has a credit balance of $840 before the year-end adjustment. Service revenue (all on account) for 2016 was $600,000. Canning estimates that doubtful-account expense for the year is 2% of service revenue. Make the year-end entry to record doubtful-account expense. Show how Accounts Receivable and Allowance for Doubtful Accounts are reported on the balance sheet at December 31, 2016.
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-0134127620

11th edition

Authors: Walter Harrison, Charles Horngren, William Thomas, Wendy Tietz

Question Posted: