(Learning Objective 4: Applying the allowance method to account for uncollectibles) Gray and Dumham, a law fi...

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(Learning Objective 4: Applying the allowance method to account for uncollectibles)

Gray and Dumham, a law fi rm, started 20X6 with accounts receivable of $31,000 and an allowance for uncollectible accounts of $4,000. The 20X6 service revenues on account totaled

$175,000, and cash collections on account totaled $128,000. During 20X6, Gray and Dumham wrote off uncollectible accounts receivable of $2,800. At December 31, 20X6, the aging of accounts receivable indicated that Gray and Dumham will not collect $1,850 of its accounts receivable.

Journalize Gray and Dumham’s

(a) service revenue,

(b) cash collections on account,

(c) write-offs of uncollectible receivables, and

(d) uncollectible-account expense for the year.

Explanations are not required. Prepare a T-account for Allowance for Uncollectible Accounts to show your computation of uncollectible-account expense for the year.

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Related Book For  book-img-for-question

Financial Accounting International Financial Reporting Standards

ISBN: 9780273777809

1st Global Edition

Authors: Walter T Harrison, Charles Horngren, Bill Thomas, Themin Suwardy

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