This exercise continues the situation of Starter 9-1 , in which Spring Break Travel ended 2013 with Accounts Receivable at $80,000 and Allowance for Doubtful Accounts at $7,000.
During 2014, Spring Break Travel completed these transactions:
1. Service revenue on account, $800,000 (assume no cost of goods sold).
2. Collections on account, $840,000.
3. Write-offs of uncollectibles, $6,000.
4. Bad-debt expense, 1 percent of service revenue.
Journalize Spring Break Travel's 2014 transactions and show the updated balance sheet totals.