During 2013, Rockingham Trucking Co. had service revenue on account of $1,400,000. Rockingham had a balance in the Accounts Receivable account of $140,000 at the beginning of the year and a year-end balance of $170,000. During the year Rockingham wrote-off $35,000 of worthless receivables. Rockingham uses the direct write-off method for uncollectible accounts.
a) Prepare the journal entry for Rockingham's revenue for 2013.
b) Prepare the journal entry to record the write-off of the receivables.
c) What amount of cash did Rockingham collect from customers during 2013?

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The Answer of During 2013, Rockingham Trucking Co. had service revenue on account of $1,400,000. Rockingham had a balance in the Accounts Receivable account of $140,000 at the beginning of the year and a year-end balance of $170,000. During the year Rockingham wrote-off $35,000 of worthless receivables. Rockingham uses the direct write-off method for uncollectible accounts.
a) Prepare the journal entry for Rockingham's revenue for 2013.
b) Prepare the journal entry to record the write-off of the receivables.
c) What amount of cash did Rockingham collect from customers during 2013?