Essay
Info Times Inc. had service revenue on account for the year of $300,000 and cash collections of $130,000. During the year, uncollectible accounts receivable of $700 were written off. At December 31, an aging of accounts receivable indicated that Info Times Inc. will not collect $4,500 of its accounts receivable. Info Times Inc. had a $2,100 credit balance in the Allowance for Uncollectible Accounts at the beginning of the year.
1. Journalize the entries to record (1) the service revenue, (2) the cash collections, (3) the write-off of the uncollectible receivable and (4) the year end entry to record uncollectible account expense.
Correct Answer:
Verified
Correct Answer:
Verified
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