osie Dry Cleaning was started on January 1, Year 1. It experienced the following events during its first two years of operation: Events Affecting Year 1 Provided $45,000 of cleaning services on account. Collected $39,000 cash from accounts receivable. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account.

Question

Rylee Blake

Business

16 October, 20:33

osie Dry Cleaning was started on January 1, Year 1. It experienced the following events during its first two years of operation: Events Affecting Year 1 Provided $45,000 of cleaning services on account. Collected $39,000 cash from accounts receivable. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account.

+4

Answers (1)

Know the Answer?

Gina Santos · Answer 1

The Bad Debt expense will be in year 1;

Explanation:

The Bad Debt Expense $45,000*1%=$450

The journal entry will be

Bad Debt Expense Dr.$450

Account Receivable Cr.$450