Question
[The following information applies to the questions displayed below.] Holmes Cleaning Service began operation on January 1, 2016. The company experienced the following events for
[The following information applies to the questions displayed below.]
Holmes Cleaning Service began operation on January 1, 2016. The company experienced the following events for its first year of operations: |
Events Affecting 2016: |
1. | Provided $180,000 of cleaning services on account. | ||||||||||
2. | Collected $135,000 cash from accounts receivable. | ||||||||||
3. | Paid salaries of $32,000 for the year. | ||||||||||
4. | Adjusted the accounts to reflect managements expectations that uncollectible accounts expense would be $1,400. The expense was determined using the percent of revenue method.
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