osie Dry Cleaning was started on January 1, Year 1. It experienced the following events during its first two years of operation:

Question

3 years ago

15

osie Dry Cleaning was started on January 1, Year 1. It experienced the following events during its first two years of operation:

Events Affecting Year 1 Provided $45,000 of cleaning services on account. Collected $39,000 cash from accounts receivable. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account.

Business

1 answer:

neonofarm [45] · Answer 1 · 2022-04-04T09:20:00+03:00

neonofarm [45]3 years ago

6 0

Answer:

The Bad Debt expense will be in year 1;

Explanation:

The Bad Debt Expense $45,000*1%=$450

The journal entry will be

Bad Debt Expense Dr.$450

Account Receivable Cr.$450