All revenue and expense accounts have been closed at the end of the calendar year for ABC Company. The Income Summary account has total debits of $530,000 and total credits of $600,000. As of the same date, Owner’s Capital has a balance of $115,000, and Owner’s Drawings has a balance of $48,000. Prepare the journal entries required to complete the closing of the accounts.

The following events occur for Morris Engineering during 2021 and 2022, its first two years of operations.   February   2,   2021   Provide services to customers on account for $34,400. July   23,   2021   Receive $24,000 from customers on account. December   31,   2021   Estimate that 25% of uncollected accounts will not be received. April   12,   2022   Provide services to customers on account for $47,400. June   28,   2022   Receive $6,000 from customers for services provided in 2021. September   13,   2022   Write off the remaining amounts owed from services provided in 2021. October   5,   2022   Receive $42,000 from customers for services provided in 2022. December   31,   2022   Estimate that 25% of uncollected accounts will not be received.   2. Post transactions to the following accounts: Cash, Accounts Receivable, and Allowance for Uncollectible Accounts.

Need Answer

During July 2022, Midtown Catering recorded the following: - Catering services of $86,400 were provided ($64,500 on account, $21,900 for cash) - Collections on account, $58,950 - Write-offs of uncollectible receivables, $2,560 - Recovery of receivable previously written off, $1,000 Journalize Midtown's transactions during July, assuming Midtown uses the allowance method. Omit explanations. Prepare the journal entry for the write off of the accounts receivable.