Question

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.) Record the service revenue of $16,000 billed on account. Record the write-off of a certain customer account from a prior year which is not collectible totaling $1,050. Record the reversal of the write-off of a $710 customer account. Record the receipt of cash of $710 from the customer. Record the estimated bad debts of $410 for the year.

Answer 1

• Journal Entries

Transaction	Accounts title	Debit	Credit
1	Accounts receivables	$            16,000.00
	Service Revenue		$           16,000.00
	(Service revenue on account)
2	Allowance for Doubtful Accounts	$              1,050.00
	Accounts receivables		$             1,050.00
	(Accounts written off)
3	Accounts receivables	$                  710.00
	Allowance for Doubtful Accounts		$                 710.00
	(Reversal of the write off)
4	Cash	$                  710.00
	Accounts receivables		$                 710.00
	(Cash received from accounts re instated)
5	Bad Debt Expenses	$                  410.00
	Allowance for Doubtful Accounts		$                 410.00
	(Bad Debt Expense recorded)