Atlas Travel ended 2014 with Accounts Receivable of $90,000 and an Allowance for Doubtful Accounts balance of

Question:

Atlas Travel ended 2014 with Accounts Receivable of $90,000 and an Allowance for Doubtful Accounts balance of $8,000. During 2015, Atlas Travel had the following activity:

a. Service revenue earned on account, $600,000.

b. Collections on account, $580,000.

c. Write-offs of uncollectibles, $15,000.

d. Bad debt expense, estimated as 2% of service revenue.

Journalize Atlas Travel's activity for 2015.

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...