On October 31, a customer balance of $1,900 from a prior year was determined to
ID: 2445637 • Letter: O
Question
On October 31, a customer balance of $1,900 from a prior year was determined to be uncollectible and was written off.
On December 31, $580 of bad debts were estimated and recorded for the year.
Prepare journal entries for each transaction above. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
1. Record the service revenue of $33,000 billed on account.
2. Record the write-off of a certain customer account from a prior year which is not collectible totaling $1,900.
3.Record the reversal of the write-off of a $820 customer account.
4. Record the receipt of cash of $820 from the customer.
5.Record the estimated bad debts of $580 for the year
Fraud Investigators Inc. operates a fraud detection service.Explanation / Answer
Journal Entry
Date
Accounts
Dr.
Cr.
March 31
Account Receivable
33000
Service Revenue
33000
Oct. 31
Bad Debts
1900
Account Receivable
1900
Dec. 15
Cash
820
Bad Debts Recovered
820
Dec. 31
Bad Debts
580
Account Receivable
580
Date
Accounts
Dr.
Cr.
March 31
Account Receivable
33000
Service Revenue
33000
Oct. 31
Bad Debts
1900
Account Receivable
1900
Dec. 15
Cash
820
Bad Debts Recovered
820
Dec. 31
Bad Debts
580
Account Receivable
580
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.