Reed\'s Auto Repair ended 2015 with Accounts receivable of $89,000 and a credit

Question

Reed's Auto Repair ended 2015 with Accounts receivable of $89,000 and a credit balance in Allowance for uncollectible accounts of $10,000. During 2016, Reed's Auto Repair had the following activity: (Cilick the icon to view the transactions.) Journalize Reed's Auto Repair's activity for 2016. (Record debits first, then credits. Exclude explanations from any journal entries.) a. Service revenue earned on account, $496,000 More Info Journal Entry Date Accounts Debit Credit a. Service revenue earned on account, $496,000 b. Collections on account, $545,000 c.Write-offs of uncollectibles, $16,000 d. Bad debt expense, estimated as 2 percent of service revenue on account 2016 Print Done

Explanation / Answer

a Accounts Receivable 496000       Service Revenue 496000 b Cash 545000       Accounts Receivable 545000 c Allowance for Doubtful accounts 16000       Accounts Receivable 16000 d Bad debts expense 9920 =496000*2%      Allowance for Doubtful accounts 9920

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