Johnsen Company earned service revenue on account of $300,000 and had cash collections of $130,000 for the year. During the year, uncollectible accounts receivable of $2,000 were written off. At December 31, an aging-of-accounts receivable schedule indicated that Johnsen Company will not collect $10,000 of accounts receivable. There was a credit balance of $2,100 in the Allowance for Uncollectible Accounts at the beginning of the year.
Required:
Journalize the entries to record (1)service revenue, (2)cash collections, (3)write-off of the uncollectible receivables and (4)the adjusting entry to record Uncollectible-Account Expense. Ignore Cost of Goods Sold. Explanations are not required.

Question

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The Answer of Johnsen Company earned service revenue on account of $300,000 and had cash collections of $130,000 for the year. During the year, uncollectible accounts receivable of $2,000 were written off. At December 31, an aging-of-accounts receivable schedule indicated that Johnsen Company will not collect $10,000 of accounts receivable. There was a credit balance of $2,100 in the Allowance for Uncollectible Accounts at the beginning of the year.
Required:
Journalize the entries to record (1)service revenue, (2)cash collections, (3)write-off of the uncollectible receivables and (4)the adjusting entry to record Uncollectible-Account Expense. Ignore Cost of Goods Sold. Explanations are not required.

Johnsen Company Earned Service Revenue on Account of $300,000 and Had