Perform the following accounting for the receivables of A & G, an accounting firm, at December 31, 2014. 1. Start with the beginning balances for these T-accounts: Accounts Receivable, $80,000 Allowance for Uncollectible Accounts, $9,000 Post the following 2014 transactions to the T-accounts: a. Service revenue of $850,000, all on account b. Collections on account, $790,000 c. Write-offs of uncollectible accounts, $7,000 d. Bad debt expense (allowance method), $8,000 2. What are the ending balances of Accounts Receivable and Allowance for Uncollectible Accounts? 3. Show two ways A & G could report accounts receivable on its balance sheet at December 31, 2014.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Question: Perform the following accounting for the receivables of A & G, an accounting firm, at December 31, 2014.

1. Start with the beginning balances for these T-accounts:

  • Accounts Receivable, $80,000
  • Allowance for Uncollectible Accounts, $9,000

Post the following 2014 transactions to the T-accounts:

a. Service revenue of $850,000, all on account

b. Collections on account, $790,000

c. Write-offs of uncollectible accounts, $7,000

d. Bad debt expense (allowance method), $8,000

2. What are the ending balances of Accounts Receivable and Allowance for Uncollectible Accounts?

3. Show two ways A & G could report accounts receivable on its balance sheet at December 31, 2014.

Please explain & show steps, thank you.

 

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