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.

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Related Book For  book-img-for-question

Fundamentals Of Financial Accounting

ISBN: 9781265440169

7th Edition

Authors: Fred Phillips, Shana Clor Proell, Robert Libby, Patricia Libby

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