S5-12. (Learning Objective 4: Applying the allowance method to account for uncollectibles)

Perform the following accounting for the receivables of Robbins and Williams, a law firm, at December 31, 20X6.

Requirements 1. Start with the beginning balances for these T-accounts:
■ Accounts Receivable, $89,000 ■ Allowance for Uncollectible Accounts, $6,000 Post the following 20X6 transactions to the T-accounts:

a. Service revenue of $753,000, all on account

b. Collections on account, $774,000

c. Write-offs of uncollectible accounts, $8,000

d. Uncollectible-account expense (allowance method), $12,000 2. What are the ending balances of Accounts Receivable and Allowance for Uncollectible Accounts?
3. Show how Robbins and Williams will report accounts receivable on its Balance Sheet at December 31, 20X6.