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Spring Break Travelended 2019 wth Accounts Receivable et $88,000 and an Allowance for Dautiful Accounts at $17,200. During 2020, Spring Break Travel compted the transactions
Spring Break Travelended 2019 wth Accounts Receivable et $88,000 and an Allowance for Dautiful Accounts at $17,200. During 2020, Spring Break Travel compted the transactions 1. Service revenue on account $820,000 (same cost of goods sold 2. Colections on account, $855.000 3. Write-offs of uncollectibles $6.000 4. Bad debt expense 2 percent of service revenue Joumaize Spring Break Travels 2020 transactions, and show updated balance sheet Begin by recording service revenue Service revenue on account, $20.000 (assume no cost of goods) (Record debt first, then credentions from ouma entre) Journal Entry Accounts Credit Debit 1 Now, record collections. Collections on account, $855,000 Journal Entry Accounts Debit Credit 2 Next, record receivables actually written off during the year. Write-offs of uncollectibles, $6,000. Journal Entry Accounts Debit Credit 3 Last, estimate the uncollectible amount for 2020 sales revenue on account. Bad debt expense, 2 percent of service revenue. Journal Entry Accounts Debit Credit Show the updated balance sheet totals. Balance sheet: Accounts receivable, net
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