Journal entry: June 3, 2021 Accounts Receivable 26,000 Service Receivable (debit) 26,000 (credit) June 8, 2021 Cash 14,210 (Debit) Sales Discount 290 (Debit) Accounts Receivable 14,500 (credit) Nov 15, 2021 Balances for uncollectible accounts 9,100 (Debit) Accounts receivable 9,100 (Credit) Dec 31, 2021 Bad debt expense 8,440 (Debit) Allowance for uncollectible accounts 8,440 (Credit) Dec 31, 2021 Interest receivables 960 (Debit) Interest revenue 960 (Credit) Dec 31, 2021 Service revenue 154,600 (Debit) Interest revenue 960 (debit) Sales discount 290 (credit) Retained earnings 155,270 (Credit) Dec 31, 2021 Retained earnings 132,540 (Debit) Salaries expense 72,800 (Credit) Utilities expense 29,900 (Credit) Supplies expense 21,400 (Credit) Bad debt expense 8,440 (Credit) Unadjusted accounts receivable balance $51,000 Add: additional services provided on account (June 3) $26,000 Less: payment received from customer (June 8) Les: accounts receivable written off (November 5) Adjusted accounts receivable balance ($14,500) ($9100) $3400 Bad debt expense equals ($53,400 * 10%) -$6000 plus $9100 equals $8440 The general ledger of Pop's Fireworks includes the following account balances in 2021: Accounts Cash Debit Credit $ 25,000 Accounts Receivable 51,000 Allowance for Uncollectible Accounts Supplies $ 6,000 12,400 Notes Receivable (8%, due in 2 years) 48,000 Land Accounts Payable 104,000 Common Stock Retained Earnings 16,100 182,000 31,800 Service Revenue Salaries Expense Utilities Expense Supplies Expense 128,600 72,800 29,900 Totals 21,400 $364,500 $364,500 In addition, the following transactions occurred during 2021 and are not yet reflected in the account balances above: June June 3 Provide additional services on account for $26,000. All services on account include terms 2/10, n/30. 8 Receive cash from customers within 10 days of the services being provided on account. The customers were originally charged $14,500. November 15 Write off customer accounts of $9,100 as uncollectible. The following information is available on December 31. a. Estimate that 10% of the balance of accounts receivable (after the transactions listed above) will not be collected. b. Accrue interest on the note receivable of $48,000, which was accepted on October 1, 2021. Interest is due each September 30.