At December 31, 2012, Warm Weather Travel has an Accounts Receivable balance of $91,000. Allowance for Doubtful Accounts has a credit balance of $840 before the year-end adjustment. Service Revenue for 2012 was $600,000. Warm Weather estimates that doubtful-account expense for the year is 1% of sales.

Requirement

1.	Make the year-end entry to record Doubtful-Account Expense. Show how Accounts Receivable and Allowance for Doubtful Accounts are reported on the balance sheet.

Prepare the year-end entry to record Doubtful Account Expense. (Record debits first, then credits. Explanations are not required.)

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Journal Entry
Date	Accounts	Debit	Credit
Dec	31

Show how the Accounts Receivable and the Allowance for Doubtful Accounts are reported on the balance sheet.

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	BALANCE SHEET (Partial)
	Current assets:

At December 31, 2012, Warm Weather Travel has an Accounts Receivable balance of $91,000. Allowance for Doubtful Accounts has a credit balance of $840 before the year-end adjustment. Service Revenue for 2012 was $600,000. Warm Weather estimates that doubtful-account expense for the year is 1% of sales. Requirement 1. Make the year-end entry to record Doubtful-Account Expense. Show how Accounts Receivable and Allowance for Doubtful Accounts are reported on the balance sheet. Prepare the year-end entry to record Doubtful Account Expense. (Record debits first, then credits. Explanations are not required.) Journal Entry Accounts Date Dec Debit Credit 31 Show how the Accounts Receivable and the Allowance for Doubtful Accounts are reported on the balance sheet. BALANCE SHEET (Partial) Current assets: Show how the Accounts Receivable and the Allowance for Doubtful Accounts are reported on the balance sheet. BALANCE SHEET (Partial) Current assets: On November 30, High Peaks Party Planners had a $ 34,000 balance in Accounts Receivable and a $3,000 credit balance in Allowance for Uncollectible Accounts. During December, the store made credit sales of $ 159,000. December collections on account were $ 130,000, and write-offs of uncollectible receivables totaled $ 2,700. Uncollectible-account expense is estimated as 1 % of revenue. Requirements 1. Journalize sales, collections, write-offs of uncollectibles, and uncollectible-account expense by the allowance method during December. Explanations are not required. 2. Show the ending balances in Accounts Receivable, Allowance for Uncollectible Accounts, and Net Accounts Receivable at December. How much does the store expect to collect? 3. Show how the store will report accounts receivable and net sales on its December 31 balance sheet and income statement. Requirement 1. Journalize sales, collections, write-offs of uncollectibles, and uncollectible-account expense by the allowance method during December. Explanations are not required. (Record debits first, then credits.) (a) Begin by recording the journal entry for December sales. Date (a) Journal Entry Accounts Debit Credit Date Dec 31 Dec 31 Dec 31 Dec 31 Accounts Accounts Receivable Sales Revenue Debit 159,000 Cash Accounts receivable 130,000 Allowance for uncollectible-account Accounts receivable 2,700 uncollectible-account expense Allowance for uncollectibleaccount 1,590 159,000 130,000 2,700 1,590 Ending balance Account Accounts receivable Allowance for uncollectable accounts Net accounts receivable Credit Ending balance 63,000 1,890 61,110 Show how the Accounts Receivable and the Allowance for Doubtful Accounts are reported on the balance sheet. BALANCE SHEET (Partial) Current assets: On November 30, High Peaks Party Planners had a $ 34,000 balance in Accounts Receivable and a $3,000 credit balance in Allowance for Uncollectible Accounts. During December, the store made credit sales of $ 159,000. December collections on account were $ 130,000, and write-offs of uncollectible receivables totaled $ 2,700. Uncollectible-account expense is estimated as 1 % of revenue. Requirements 1. Journalize sales, collections, write-offs of uncollectibles, and uncollectible-account expense by the allowance method during December. Explanations are not required. 2. Show the ending balances in Accounts Receivable, Allowance for Uncollectible Accounts, and Net Accounts Receivable at December. How much does the store expect to collect? 3. Show how the store will report accounts receivable and net sales on its December 31 balance sheet and income statement. Requirement 1. Journalize sales, collections, write-offs of uncollectibles, and uncollectible-account expense by the allowance method during December. Explanations are not required. (Record debits first, then credits.) (a) Begin by recording the journal entry for December sales. Date (a) Journal Entry Accounts Debit Credit Date Dec 31 Dec 31 Dec 31 Dec 31 Accounts Accounts Receivable Sales Revenue Debit 159,000 Cash Accounts receivable 130,000 Allowance for uncollectible-account Accounts receivable 2,700 uncollectible-account expense Allowance for uncollectibleaccount 1,590 159,000 130,000 2,700 1,590 Ending balance Account Accounts receivable Allowance for uncollectable accounts Net accounts receivable Credit Ending balance 63,000 1,890 61,110