At December 31, 2021, Waco Travel Agency has an Accounts Receivable balance of $93,000. Allowance for Uncollectible Accounts has a credit balance of $870 before the year-end adjustment. Service revenue (all on account) for 2021 was $800,000. Waco estimates that its uncollectible-account expense for the year is 1% of service revenue. Make the year-end entry to record uncollectible account expense. Show how Accounts Receivable and Allowance for Uncollectible Accounts are reported on the balance sheet at December 31, 2021.

Requirements

1. Journalize sales, collections, write-offs of uncollectibles, and uncollectible-account expense by the allowance method during July. Explanations are not required.

2. Show the ending balances in Accounts Receivable, Allowance for Uncollectible Accounts, and Net Accounts Receivable at July 31. How much does Premier expect to collect?

3. Show how Premier Party Planners will report accounts receivable and net sales on its July 31 balance sheet and income statement for the month ended July 31.