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3.3 Calculation of Allowance for Uncollectibles using Percent of Revenue Method Background Information: Donald Duck and Friends began operations on January 1, 2017 The following
3.3 Calculation of Allowance for Uncollectibles using Percent of Revenue Method | ||||||||||
Background Information: Donald Duck and Friends began operations on January 1, 2017 | ||||||||||
The following events occurred during the year | ||||||||||
1 | Provided lawn services on account for $90,000 | |||||||||
2 | Collected $82,000 cash from accounts receivable | |||||||||
3 | Paid salaries to Mickey for the year of $30,000 | |||||||||
4 | Company estimates 2% of the on account revenue to be uncollectible based on percent of revenue method. | |||||||||
b) Prepare an income statement for 2017 | ||||||||
Donald Duck and Friends | ||||||||
Income Statement | ||||||||
For the Year Ended December 31,2017 | ||||||||
Operating Expense | ||||||||
Net Income | $ - |
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