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Perform the following accounting for the receivables of Garvey and Pullman, a law firm, at December 31, 2018. Read the requirements Requirements 1 and 2.
Perform the following accounting for the receivables of Garvey and Pullman, a law firm, at December 31, 2018. Read the requirements Requirements 1 and 2. Start with the beginning balances for these T-accounts: Accounts Receivable, $95,000, Allowance for Uncollectible Accounts, $5,000. Post the following 2018 transactions to the T-accounts: a. Service revenue of $695,000, all on account b. Collections on account, $716,000 c. Write-offs of uncollectible accounts, $15,000 d. Uncollectible-account expense (allowance method), $13,000. What are the ending balances of Accounts Receivable and Allowance for Uncollectible Accounts? Prepare the T-accounts for accounts receivable and allowance for uncollectible accounts. (Abbreviation used: Beg bal Beginning balance; End bal Ending balance; Uncoll acct exp Uncollectible account expense.) Accounts Receivable Allowance for Uncollectible Accounts Requirement 3. Show how Garvey and Pullman will report accounts receivable on its balance sheet at December 31, 2018. Less: Net credit sales total $1,160,000. Beginning and ending accounts receivable are $35,000 and $45,000, respectively. Calculate the days' sales outstanding. (Round interim calculations to two decimal places, XX.XX and the days' sales outstanding (DSO) up to the next whole day.) O A. 13 days ( B. 10 days O C. 19 days O D. 14 days
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