Required information

Exercise 7-2A Accounting for uncollectible accounts: allowance method LO 7-1

[The following information applies to the questions displayed below.] 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:

1. Provided $160,000 of cleaning services on account.
2. Collected $120,000 cash from accounts receivable.
3. Paid salaries of $24,000 for the year.
4. Adjusted the accounts to reflect managements expectations that uncollectible accounts expense would be $1,600. The expense was determined using the percent of revenue method.

Exercise 7-2A Part b

b. Post the general journal entries to T-accounts.

Required information Exercise 7-2A Accounting for uncollectible accounts: allowance method LO 7-1 The following information applies to the questions displayed below) Holmes Cleaning Service began operation on January 1 Year 1. The company experienced the following events for its first year of operations Events Affecting Yeart: 1. Provided $160.000 of cleaning services on account 2. Collected $120,000 cash from accounts receivable. 3. Paid salaries of $24,000 for the year. 4. Adjusted the accounts to reflect management's expectations that uncollectible accounts expense would be $1,600. The expense was determined using the percent of revenue method. Exercise 7-2A Part b b. Post the general Journal entries to T-accounts Cash Beg. Bal. Beg. Bal. Service Revenue Of 160,000 120,000 24,000 3. End. Bal96.000 End. Bal 160.000 Accounts Receivable Beg. Bal. Beg Bal Salaries Expense ol 24.000 160,000 120.0002 End. Bal. 40.000 End. Bal. 24.000 Allowance for Doubtful Accounts Beg Bal. Uncollectible Accounts Expense Beg. Bal. 11,600 End. Bal 1.600 End. Bal 1,600