1. 2 3 4. 5. Services performed for customers through February 27, 2022, but unbilled and uncollected were $3,120. Received notice that a customer who was billed $160 for services performed February 10 has filed for bankruptcy, Sage Hill Cleaning Services does not expect to collect any portion of this outstanding receivable. Sage Hill Cleaning Services uses the allowance method to estimate bad debts. Sage Hill Cleaning Services estimates that of its month-end receivables will not be collected Record 1 month of depreciation for the floor equipment. Use the straight-line method, an estimated life of 4 years, and $410 salvage value. Record 1 month of insurance expense. An inventory count shows $330 of supplies on hand at February 28, One week of services were performed for the customer who paid in advance on February 17, Accrue for wages owed through February 28, 2022. Accrue for interest expense for 1 month Karen estimates a 20% income tax rate. (Hint: Prepare an income statement up to "income before taxes to help with the income tax calculation) 6. 7 8 9. 10. No. Account Titles and Explanation Debit Credit 1. Accounts Receivable 3120 Service Revenue 3120 2. Allowance for Doubtful Accounts 160 Accounts Receivable 160 3. Bad Debt Expense Allowance for Doubtful Accounts 4. Depreciation Expense Accumulated Depreciation Equipment 5. Insurance Expense Prepaid Insurance 6. Supplies Expense Supplies 7. Unearned Service Revenue Service Revenue 8. Salaries and Wages Expense Salaries and Wages Payable 9. Interest Expense Interest Payable 10. Income Tax Expense Income Taxes Payable 1. 2 3 4. 5. Services performed for customers through February 27, 2022, but unbilled and uncollected were $3,120. Received notice that a customer who was billed $160 for services performed February 10 has filed for bankruptcy, Sage Hill Cleaning Services does not expect to collect any portion of this outstanding receivable. Sage Hill Cleaning Services uses the allowance method to estimate bad debts. Sage Hill Cleaning Services estimates that of its month-end receivables will not be collected Record 1 month of depreciation for the floor equipment. Use the straight-line method, an estimated life of 4 years, and $410 salvage value. Record 1 month of insurance expense. An inventory count shows $330 of supplies on hand at February 28, One week of services were performed for the customer who paid in advance on February 17, Accrue for wages owed through February 28, 2022. Accrue for interest expense for 1 month Karen estimates a 20% income tax rate. (Hint: Prepare an income statement up to "income before taxes to help with the income tax calculation) 6. 7 8 9. 10. No. Account Titles and Explanation Debit Credit 1. Accounts Receivable 3120 Service Revenue 3120 2. Allowance for Doubtful Accounts 160 Accounts Receivable 160 3. Bad Debt Expense Allowance for Doubtful Accounts 4. Depreciation Expense Accumulated Depreciation Equipment 5. Insurance Expense Prepaid Insurance 6. Supplies Expense Supplies 7. Unearned Service Revenue Service Revenue 8. Salaries and Wages Expense Salaries and Wages Payable 9. Interest Expense Interest Payable 10. Income Tax Expense Income Taxes Payable