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value: 12.00 points transactionlevent, select \"No Journal Entry Required\" in t

ID: 2550054 • Letter: V

Question

value: 12.00 points transactionlevent, select "No Journal Entry Required" in the first account fleld.) 2. Prepare the journal entries for items (a)-0. (If no entry is required for a 1 Record service revenue ot $32,000 sold on account during January. 2 Record the adjusting entry for bad debtst as of January 31 using 1 percent of credit sales. 3 Record the collection of $16,000 of outstanding accounts receivables on February 4 receivable on February 15. provided on account during February. Credit 4 Record the write-off of a $100 account 5 Record service revenue of $22,000 Note:-journal entry has been entered Record entry View general journal Clear entry References eBook & Resources General Journal Learning Objective: 08-02 Estimate and rep uncollectible accounts Difficulty: 3 Hard Learming Objective: 08-03 Compute and rep receivable 9. value

Explanation / Answer

Journal entries

1-

date

explanation

debit

credit

accounts receivables

sales revenue

32000

cash

16000

1-Jan

accounts receivables

32000

service revenue

22000

allowance for doubtful debts

100

sales revenue

32000

allowance for doubtful debt

100

cash

100

balance

37900

31-Jan

bad debts

320

Total

54100

total

54100

allowance for doubtful debts

320

allowance for doubtful debts

4-Feb

cash

16000

accounts receivables

100

bad debts

320

accounts receivables

16000

Balance

540

bad debts

220

accounts receivable

100

15-Feb

allowance for doubtful debts

100

Total

640

total

640

accounts receivables

100

bad debt

accounts receivables

22000

allowance for doubtful debts

320

balance

540

service revenue

22000

allowance for doubtful debts

220

Total

540

28-Feb

bad debts

220

allowance for doubtful debts

220

2-

balance sheet

current assets

1-Mar

notes receivables

2400

Accounts receivables

37900

Cash

2400

less allowance for doubtful debts

540

37360

notes receivables+ interest on notes receivables

2400

1-Mar

accounts receivable

100

allowance for doubtful debt

100

total of current assets

1-Mar

Cash

100

accounts receivable

100

3-

bad debt

before income from operation

interest revenue

after income from operations

31-Mar

Notes receivables

interest revenue

Journal entries

1-

date

explanation

debit

credit

accounts receivables

sales revenue

32000

cash

16000

1-Jan

accounts receivables

32000

service revenue

22000

allowance for doubtful debts

100

sales revenue

32000

allowance for doubtful debt

100

cash

100

balance

37900

31-Jan

bad debts

320

Total

54100

total

54100

allowance for doubtful debts

320

allowance for doubtful debts

4-Feb

cash

16000

accounts receivables

100

bad debts

320

accounts receivables

16000

Balance

540

bad debts

220

accounts receivable

100

15-Feb

allowance for doubtful debts

100

Total

640

total

640

accounts receivables

100

bad debt

accounts receivables

22000

allowance for doubtful debts

320

balance

540

service revenue

22000

allowance for doubtful debts

220

Total

540

28-Feb

bad debts

220

allowance for doubtful debts

220

2-

balance sheet

current assets

1-Mar

notes receivables

2400

Accounts receivables

37900

Cash

2400

less allowance for doubtful debts

540

37360

notes receivables+ interest on notes receivables

2400

1-Mar

accounts receivable

100

allowance for doubtful debt

100

total of current assets

1-Mar

Cash

100

accounts receivable

100

3-

bad debt

before income from operation

interest revenue

after income from operations

31-Mar

Notes receivables

interest revenue