Suppose Olson Estimates that 4% of (gross) revenues will become uncollectible. A

Question

Suppose Olson Estimates that 4% of (gross) revenues will become uncollectible. Assume all revenues are on credit.
Requirement 1. Journalize service revenue (all on account), bad-debt expense, and write offs during May. Include explanations. Homework: Chapter 5 Homework Score: 0 of 1 pt 2 of 7 (1 complete) E5-33B (book/static) Assume Olson Foods, Inc., experienced the following revenue and accounts receivable write-offs: EEB (Click the icon to view the revenue and accounts receivable write-off information.) Suppose Olson estimates that 4% of (gross) revenues will become uncollectible. Assume all revenues are on credit. Requirement 1. Joumalize service revenue (all on account), bad-debt expense, and write-offs during May. Include explanations. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by preparing the journal entry for service revenue for the month of May. Journal Entry Date Accounts and Explanations Debit Credit Mar Data Table Service Accounts Receivable Write-Offs in Month Month Revenue March April May March AprilMay Totäls 3,300 53 $ 87 140 126 100 366 4,400 4,100 100 S 26 100 $ 11,800 53 187 S 126 $ 2

Explanation / Answer

Date Accounts and Explanations Debit Credit March Accounts receivable 11,800 Sales revenue 11,800 Bad debts expense 708 Allowance for doubtful accounts 708 (11800*6%) Allowance for doubtful accounts 366 Account receivable 366

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