Answer:
Explanation:
12-June
Dr Accounts revenue $40,400
Cr Service revenue $40,400
17- September
Dr Cash $24,500
Cr Accounts receivable $24,500
31- December
Dr Bad debt expense $7,155 [(40,400-24,500)*45%]
Cr Allowance for uncollectible accounts $7,155
4- March
Dr Accounts receivable $55,400
Cr Service revenue $55,400
20- May
Dr Cash $10,000
Cr Accounts receivable $10,000
2- July
Dr Allowance for uncollectible accounts $5900
Cr Accounts receivable [40400-24,500-10,000] $5,900
19- Oct
Dr Cash $44,500
Cr Accounts receivable $44,500
31- Dec
Dr Bad debts expense $3,650
Cr Allowance for uncollectible accounts[(55,400-44,500)*45%-1255] 3,650
3.
2015:
total accounts receivable 15,900
allowance for uncollectible accounts 7,155
net realizable value 8745 [15,900-7,155]
2016:
total accounts receivable 10,900
allowance for uncollectible accounts 4,905
net realizable value 5995 [10,900-4,905]
