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Gray and Doherty, a law firm, started 2020 with accounts receivable of $66,000 and an allowance for uncollectible accounts of $5,300. The 2020 service revenue
Gray and Doherty, a law firm, started 2020 with accounts receivable of $66,000 and an allowance for uncollectible accounts of $5,300. The 2020 service revenue on account was $434,000, and cash collections on account totalled $412,000 During 2020, Gray and Doherty wrote off uncollectible accounts receivable of $7,600. At December 31, 2020, the aging-of-receivables method indicated that Gray and Doherty will not collect $10,500 of its accounts receivable. Journalize Gray and Doherty's (a) service revenue, (b) cash collections on account, (c) write-offs of uncollectible receivables, and (d) bad debt expense for the year. Explanations are not required. Prepare a T-account for Allowance for Uncollectible Accounts to show your computation of bad debt expense for the year. Requirement 1. Journalize Gray and Doherty's (a) service revenue, (b) cash collections on account, (c) write-offs of uncollectible receivables, and (d) bad debt expense for the year. (a) We start by entering the journal entry to record service revenue on account for the year. Journal Entry Accounts Debit Credit (b) Next journalize the collections on account Journal Entry Accounts Debit Credit Requirement 2. Prepare a T-account for Allowance for Uncollectible Accounts to show your computation of bad debt expense for the year. (Leave any unused cells blank.) Allowance for Uncollectible Accounts
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