Journal Entries

Required information E8-9 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 Inc. operates a fraud detection service. a. On March 31, 10 customers were billed for detection services totaling $23,000. b. On October 31, a customer balance of $1,400 from a prior year was determined to be uncollectible and was written off. c. On December 15, a customer paid an old balance of $780, which had been written off in a prior year d. On December 31, $480 of bad debts were estimated and recorded for the year. FREE