Chapter B, Problem 2P

Hardy’s Landscape Service’s total revenue on account for 2018 amounted to $273,205. The company, which uses the allowance method, estimates bad debts at ½ percent of total revenue on account.

Required

Journalize the following selected entries:

2012

Dec. 12    Record services performed on account for E. E. Morton, $245.

31    Record the adjusting entry for Bad Debts Expense.

31    Record the closing entry for Bad Debts Expense.

2013

Feb. 18    Write off the account of E. E. Morton as uncollectible, $245.

Check Figure

Adjusting entry amount,

$1,366.03