Essay
In the first year of operations, John's Repair Service recognized $220,000 of service revenue on account. The ending accounts receivable balance was $15,100. Jake estimates that 3% of sales on account will not be collected; no accounts receivable had been written off by year end. Assume there were no other transactions affecting accounts receivable.
Required:What amount of cash was collected in Year 1?What amount of uncollectible accounts expense was recognized in Year 1?
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$0 beginning accounts receivable balance...View Answer
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