Gulig and Durham, a law firm, started 2017 with accounts receivable of $60,000 and an allowance for uncollectible accounts of $5,000. The 2017 service revenue on account was $400,000, and cash collections on account totaled $410,000. During 2017, Gulig and Durham wrote off uncollectible accounts receivable of $7,000. At December 31, 2017, the aging-of-receivables method indicated that Gulig and Durham will not collect $10,000 of its accounts receivable.
Journalize Gulig and Durham's
(a) Service revenue,
(b) Cash collections on account,
(c) Write-offs of uncollectible receivables, and
(d) Bad debt expense for the year. Explanations are not required. Prepare a T-account for Allowance for Uncollectible Accounts to show your computation of bad debt expense for the year.