Question
Holmes Cleaning Service began operation on January 1, Year 1. The company experienced the following events for its first year of operations. Events Affecting Year
Holmes Cleaning Service began operation on January 1, Year 1. The company experienced the following events for its first year of operations. Events Affecting Year 1:
Provided $84,000 of cleaning services on account.
Collected $76,000 cash from accounts receivable.
Paid salaries of $28,500 for the year.
Adjusted the accounts to reflect managements expectations that uncollectible accounts expense would be $1,650. The expense was determined using the percent of revenue method.
Required a. Prepare general journal entries for the above events. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
General Journal entries:
No journal entry required
Accounts receivable
Allowance for doubtful accounts
Cash
Common stock
Credit card expense
Dividends
Interest receivable
Interest revenue
Merchandise inventory
Notes receivable
Retained earnings
Salaries expense
Service revenue
Uncollectible Accounts Expense
Journal entry worksheet Provided $84,000 of cleaning services on account. Record the event. Note: Enter debits before creditsStep by Step Solution
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