Gray and Doherty,

a law firm, started

2020

with accounts receivable of

$63,000

and an allowance for uncollectible accounts of

$4,800.

The

2020

service revenue on account was

$440,000,

and cash collections on account totalled

$418,000.

During

2020,

Gray and Doherty

wrote off uncollectible accounts receivable of

$7,400.

At December 31,

2020,

the aging-of-receivables method indicated that

Gray and Doherty

will not collect

$10,900

of its accounts receivable.Journalize

Gray and Doherty's

(a) service revenue, (b) cash collections on account, (c) write-offs of uncollectible receivables, and (d) bad debt expense for the year. Explanations are not required. Prepare a T-account for Allowance for Uncollectible Accounts to show your computation of bad debt expense for the year.

Requirement 1. Journalize

Gray and Doherty's

(a) service revenue, (b) cash collections on account, (c) write-offs of uncollectible receivables, and (d) bad debt expense for the year.

(a) We start by entering the journal entry to record service revenue on account for the year.

Journal Entry
Accounts	Debit	Credit

(b) Next journalize the collections on account.

Journal Entry
Accounts	Debit	Credit