Fraud Investigators Inc. operates a fraud detection service. R eq u i r e d : 1.
Question:
Fraud Investigators Inc. operates a fraud detection service.
Required:
1. Prepare journal entries for each transaction below.
a. On March 31, 10 customers were billed for detection services totaling $25,000.
b. On October 31, a customer balance of $1,500 from a prior year was determined to be uncollectible and was written off.
c. On December 15, a customer paid an old balance of $900, which had been written off in a prior year.
d. On December 31, $500 of bad debts were estimated and recorded for the year.
2. Complete the following table, indicating the amount and effect (+ for increase, − for decrease, and NE for no effect) of each transaction.
Step by Step Answer:
Fundamentals Of Financial Accounting
ISBN: 9781265440169
7th Edition
Authors: Fred Phillips, Shana Clor Proell, Robert Libby, Patricia Libby