Hardy’s Landscape Service’s total revenue on account for 2012 amounted to $273,205. The company, which uses the allowance method, estimates bad debts at ½ percent of total revenue on account. Required Journalize the following selected entries: 2012 Dec. 12 Record services performed on account for E. E. Morton, $245. 31 Record the adjusting entry for Bad Debts Expense. 31 Record the closing entry for Bad Debts Expense. 2013 Feb. 18 Write off the account of E. E. Morton as uncollectible, $245. Check Figure Adjusting entry amount, $1,366.03

BuyFind

College Accounting (Book Only): A ...

12th Edition
Cathy J. Scott
Publisher: Cengage Learning
ISBN: 9781305084087
BuyFind

College Accounting (Book Only): A ...

12th Edition
Cathy J. Scott
Publisher: Cengage Learning
ISBN: 9781305084087

Solutions

Chapter B, Problem 2P
Textbook Problem

Hardy’s Landscape Service’s total revenue on account for 2012 amounted to $273,205. The company, which uses the allowance method, estimates bad debts at ½ percent of total revenue on account.

Required

Journalize the following selected entries:

2012

Dec. 12 Record services performed on account for E. E. Morton, $245.

31 Record the adjusting entry for Bad Debts Expense.

31 Record the closing entry for Bad Debts Expense.

2013

Feb. 18 Write off the account of E. E. Morton as uncollectible, $245.

Check Figure

Adjusting entry amount,

$1,366.03

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