Gulig and Durham, a law firm, started 2017 with accounts receivable of $60,000 and an allowance for
Question:
Gulig and Durham, a law firm, started 2017 with accounts receivable of $60,000 and an allowance for uncollectible accounts of $5,000. The 2017 service revenue on account was $400,000, and cash collections on account totaled $410,000. During 2017, Gulig and Durham wrote off uncollectible accounts receivable of $7,000. At December 31, 2017, the aging-of-receivables method indicated that Gulig and Durham will not collect $10,000 of its accounts receivable.
Journalize Gulig and Durham's
(a) Service revenue,
(b) Cash collections on account,
(c) Write-offs of uncollectible receivables, and
(d) Bad debt expense for the year. Explanations are not required. Prepare a T-account for Allowance for Uncollectible Accounts to show your computation of bad debt expense for the year.
Accounts ReceivableAccounts 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...
Step by Step Answer:
Financial Accounting
ISBN: 978-0134564142
6th Canadian edition
Authors: Walter Jr. Harrison, Charles T. Horngren, C. William Thomas, Greg Berberich, Catherine Seguin