Wilsons Auto Repair ended 2017 with Accounts Receivable of $85,000 and a credit balance of $11,000 in

Question:

Wilson’s Auto Repair ended 2017 with Accounts Receivable of $85,000 and a credit balance of $11,000 in Allowance for Uncollectible Accounts. During 2018, Wilson’s Auto Repair had the following activity:

a. Service revenue earned on account, $545,000

b. Collections on account, $575,000

c. Write-offs of uncollectibles, $19,000

d. Bad debt expense, estimated as 3 percent of service revenue on account Journalize Wilson’s Auto Repair’s activity for 2018.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...

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