At December 31, 2012, Get Away Travel has an Accounts Receivable balance of $89,000. Allowance for Doubtful

Question:

At December 31, 2012, Get Away Travel has an balance of $89,000. Allowance for Doubtful Accounts has a credit balance of $810 before the year-end adjustment. Service Revenue for 2012 was $700,000. Get Away Travel estimates that Doubtful-Account Expense for the year is 2% of sales. Make the December 31 entry to record Doubtful-Account Expense. Show how the and the Allowance for Doubtful Accounts are reported on the balance sheet.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...