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At December 31, 2016, White's Travel has an Accounts Receivable balance of $91,000. Allowance for Doubtful Accounts has a credit balance of $910 before the
At December 31, 2016, White's Travel has an Accounts Receivable balance of $91,000. Allowance for Doubtful Accounts has a credit balance of $910 before the year-end adjustment. Service revenue (all on account) for 2016 was $900,000. White's estimates that doubful-account expense for the year is 3% of service revenue. Requirement 1. Make the year-end entry record doubtful-account expense. Show how Accounts Receivable and Allowance for Doubtful Accounts are reported on the balance sheet at December 31, 2016. Make the year-end entry to record doubtful-account expense. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Debit Credit Dec 31 Show how Accounts Receivable and the Allowance for Doubtful Accounts are reported on the balance sheet a December 31, 2016. BALANCE SHEET (Partial) Current assets: Less
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