Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help with #3 hot indicate completion. Return tog 13 At the beginning of 2021, Brad's Heating & Air (BHA) has a balance of $25,100
please help with #3 hot indicate completion. Return tog 13 At the beginning of 2021, Brad's Heating & Air (BHA) has a balance of $25,100 in accounts receivable. Because BHA is a privately owned company, the company has used only the direct write-off method to account for uncollectible accounts. However, at the end of 2021, BHA wishes to obtain a loan at the local bank, which requires the preparation of proper financial statements. This means that BHA now will need to use the allowance method. The following transactions occur during 2021 and 2022 1. During 2021, install air conditioning systems on account, $181.000. 2. During 2021, collect $176,000 from customers on account. 3. At the end of 2021, estimate that uncollectible accounts total 15% of ending accounts receivable. 4. In 2022, customers' accounts totaling $7100 are written off as uncollectible. Required: 1. Record each transaction using the allowance method. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Answer is not complete. No Transaction General Journal Debit Credit 1 1 Accounts Receivable Service Revenue 181.000 181,000 2 2. Cash Accounts Receivable 176,000 176,000 3 O Bad Debt Expense Allowance for Uncollectible Accounts
please help with #3
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started