FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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At December 31, 2021, Take a Break Travel has an Accounts Receivable balance of $91,000. Allowance for Uncollectible Accounts has a credit balance of $800 before the year-end adjustment. Service revenue (all on account) for 2021 was $550,000. Take a Break estimates that
its uncollectible-account expense for the year is 2% of service revenue.
Read the requirement.
Make the year-end entry to record uncollectible-account expense. (Record debits first, then credits. Exclude explanations from any journal entries.)
Journal Entry
Accounts
Dec
Date
Less:
31
Debit
Credit
Show how Accounts Receivable and the Allowance for Uncollectible Accounts are reported on the balance sheet at Dec
BALANCE SHEET (Partial)
Current assets:
O
Requirement
1. Make the year-end entry to record uncollectible-account expense. Show how
Accounts Receivable and Allowance for Uncollectible Accounts are reported
on the balance sheet at December 31, 2021.
Print
Done
X
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Transcribed Image Text:At December 31, 2021, Take a Break Travel has an Accounts Receivable balance of $91,000. Allowance for Uncollectible Accounts has a credit balance of $800 before the year-end adjustment. Service revenue (all on account) for 2021 was $550,000. Take a Break estimates that its uncollectible-account expense for the year is 2% of service revenue. Read the requirement. Make the year-end entry to record uncollectible-account expense. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Accounts Dec Date Less: 31 Debit Credit Show how Accounts Receivable and the Allowance for Uncollectible Accounts are reported on the balance sheet at Dec BALANCE SHEET (Partial) Current assets: O Requirement 1. Make the year-end entry to record uncollectible-account expense. Show how Accounts Receivable and Allowance for Uncollectible Accounts are reported on the balance sheet at December 31, 2021. Print Done X
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