Question: 11 Required information E8-9 (Static) Recording and Determining the Effects of Write-Offs, Recoveries, and Bad Debt Expense Estimates on the Balance Sheet and Income Statement

![Income Statement [LO 8-2] [The following information applies to the questions displayed](https://dsd5zvtm8ll6.cloudfront.net/si.experts.images/questions/2024/09/66e961d7bfa08_96766e961d762cac.jpg)
![below] Fraud Investigators Incorporated operates a fraud detection service. a. On March](https://dsd5zvtm8ll6.cloudfront.net/si.experts.images/questions/2024/09/66e961d86e799_96866e961d80c4ca.jpg)


Required information E8-9 (Static) Recording and Determining the Effects of Write-Offs, Recoveries, and Bad Debt Expense Estimates on the Balance Sheet and Income Statement [LO 8-2] [The following information applies to the questions displayed below] Fraud Investigators Incorporated operates a fraud detection service. 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 oid 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: E8-9 (Static) Part 1 Required: Prepare journal entries for each transaction above. (If no entry is required for a transaction/event, select "No Journal Entry Journal entry worksheet On March 31, 10 customers were billed for detection services totaling $25,000. Record the transaction. Note: Enter debits before credits. Journal entry worksheet 5 On October 31 , a customer balance of $1,500 from a prior year was determined to be uncollectible and was written off. Record the transaction. Note: Enter debits before credits. Journal entry worksheet 5 Record the reversal of the write-off $900 customer account. Note: Enter debits before credits. Journal entry worksheet 5 Record the cash collected $900 from the customer. Note: Enter debits before credits. Journal entry worksheet On December 31,$500 of bad debts were estimated and recorded for the year. Record the transaction. Note: Enter debits before credits
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
