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Porter Company Experienced the Following Events During 2014

Question 39

Essay

Porter Company experienced the following events during 2014:
1. Recognized $8,400 of service revenue on account
2. Wrote off as uncollectible an account receivable in the amount of $27
3. Prepared adjusting entry to recognize uncollectible accounts expense. Porter expected that 1% of service revenue would not be collected
Required:
Show how each of these events would affect the financial statements model, below. Include dollar amounts of increases and decreases. When an account is not affected by a particular event, indicate with NA. Porter Company experienced the following events during 2014: 1. Recognized $8,400 of service revenue on account 2. Wrote off as uncollectible an account receivable in the amount of $27 3. Prepared adjusting entry to recognize uncollectible accounts expense. Porter expected that 1% of service revenue would not be collected Required: Show how each of these events would affect the financial statements model, below. Include dollar amounts of increases and decreases. When an account is not affected by a particular event, indicate with NA.

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