This exercise continues the situation of Starter 9-2, in which Spring Break Travel ended 2016 with Accounts Receivable at $80,000 and Allowance for Doubtful Accounts at $7,000.
During 2017, 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 2017 transactions and show the updated balance sheet totals.