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1. Dave began the year with a $550,000 balance for A/R and a $15,000 credit balance for ADA. He sold $5,000,000 worth of services, on

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1. Dave began the year with a $550,000 balance for A/R and a $15,000 credit balance for ADA. He sold $5,000,000 worth of services, on account, throughout the year. Receivables collected throughout the year totaled $3,500,000. He was also informed that one of his customers had declared bankruptcy and his invoice for $10,000 would not be paid. After analyzing his year-end aging schedule and considering other economic information and forecasts, Dave estimates that 2.5% of his receivables will not be collected. Prepare the JEs for the year and show how the A/R and ADA accounts will appear on the balance sheet. 2. Andrea began the year with a $60,000 balance for A/R and a $600 credit balance for ADA. She sold $600,000 worth of services, on account, throughout the year. Receivables collected throughout the year totaled $360,000. She was also informed that one of her customers had declared bankruptcy and her invoice for $600 would not be paid. After analyzing her year-end aging schedule and considering other economic information and forecasts, Andrea estimates that 3.6% of her receivables will not be collected. Prepare the JEs for the year and show how the A/R and ADA accounts will appear on the balance sheet. 3. Mackenzie began the year with a $777,000 balance for A/R and a $17,000 credit balance for ADA. She sold $7,750,000 worth of services, on account, throughout the year. Receivables collected throughout the year totaled $7,100,000. She was also informed that one of her customers had declared bankruptcy and her invoice for $70,000 would not be paid. After analyzing her year-end aging schedule and considering other economic information and forecasts, Mackenzie estimates that 4.7% of her receivables will not be collected. Prepare the JEs for the year and show how the A/R and ADA accounts will appear on the balance sheet

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