Chapter 5, Problem 5.33BE

LO 5

(Learning Objective 5: Apply GAAP to uncollectible accounts) Aspen Foods, Inc., experienced the following revenue and accounts receivable write-offs:

Suppose Aspen estimates that 4% of (gross) revenues will become uncollectible. Assume all revenues are on credit.

Requirement

  1.    Journalize service revenue (all on account), uncollectible-accounts expense, and write-offs during March. Include explanations.