At December 31,2016, Fako Travel Agency has an Accounts Receivable balance of $96,000. Allowance for Doubtful Accounts

Question:

At December 31,2016, Fako Travel Agency has an balance of $96,000. Allowance for Doubtful Accounts has a credit balance of $830 before the year-end adjustment. Service revenue (all on account) for 2016 was $550,000. Fako 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 and Allowance for Doubtful Accounts are reported on the 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...