Wonder of the World Travel had interim balances at June 30, 2022 of Accounts Receivable at $82,000 and Allowance for Doubtful Accounts at $21,000, after its first half-year. During the balance of 2022, Wonder of the World Travel completed these transactions.

1. Service revenue on account, $920,000 (assume no cost of goods sold).

2. Collections on account, $870,000.

3. Write-offs of uncollectible, $6,000.

4. Bad debt expense,

3 percent of service revenue. Journalize Wonder of the World Travel's July-December 2022 transactions at the end of the first year (December 31, 2022), and show updated balance sheet totals.

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Part 1

Begin by recording service revenue. Service revenue on account,

$920,000

(assume no cost of goods sold). (Record debits first, then credits. Exclude explanations from journal entries.)

Accounts	Debit	Credit

Part 2

Now, record collections. Collections on account,

$870,000.

Accounts	Debit	Credit

Part 3

Next, record receivables actually written off during the year. Write-offs of uncollectibles,

$6,000.

Accounts	Debit	Credit

Part 4

Last, estimate the uncollectible amount for the July-December

2022

sales revenue on account. Bad debt expense,

3

percent of service revenue.

Accounts	Debit	Credit

Part 5

Show the updated balance sheet totals.

Balance sheet:
Accounts receivable, net