Perform the following accounting for the receivables of Benoit, Brown & Hill, an accounting firm, at December 31, 2017.
1. Start with the beginning balances for these T-accounts:
• Accounts Receivable, $80,000
• Allowance for Uncollectible Accounts, $9,000
Post the following 2017 transactions to the T-accounts:
a. Service revenue of $850,000, all on account
b. Collections on account, $790,000
c. Write-offs of uncollectible accounts, $7,000
d. Bad debt expense (allowance method), $8,000
2. What are the ending balances of Accounts Receivable and Allowance for Uncollectible Accounts?
3. Show two ways Benoit, Brown & Hill could report accounts receivable on its balance sheet at December 31, 2017.