Fraud Investigators Inc. operates a fraud detection service.

a.

On March 31, 10 customers were billed for detection services totaling $34,000.

b.

On October 31, a customer balance of $1,950 from a prior year was determined to be uncollectible and was written off.

c.

On December 15, a customer paid an old balance of $810, which had been written off in a prior year.

d.

On December 31, $590 of bad debts were estimated and recorded for the year.

Required:

1.

Prepare journal entries for each transaction above. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

a) Record the service revenue of $34,000 billed on account.

Transaction	General Journal	Debit	Credit
a

B) Record the write-off of a certain customer account from a prior year which is not collectible totaling $1,950..

Transaction	General	Debit	Credit

C1.Record the reversal of the write-off of a $810 customer account.

C2. Record the receiptof cash of $810 from the customer.

D. Record the estimate bad debts of $590 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. Ignore income taxes.

Transaction	Net Receivable	Net Sales	Income From Operation
A
B
C
D

Option for A : NE, +/- 34,000, +34,000, -34,000

Option for B : NE, +/- 1950, +1950, -1950

Option for C: NE, +/- 810, +810, -810
Option for D : NE, +/- 590, +590, -590

Answer rating: 100% (QA)

1 Journal Entries March 31 Debit Accounts Receivable 21000 Credit Service Revenue 21000 To record th... View the full answer