Reference no: EM132465320

FIN 440 Financial Markets and Institutions Assignment - Khazar University, Azerbaijan

Question - Goode and Devlin, a law firm, started 20X6 with accounts receivable of $30,000 and an allowance for uncollectible accounts of $4,400. The 20X6 service revenues on account totaled $154,000, and cash collections on account totaled $120,000. During 20X6, Goode and Devlin wrote off uncollectible accounts receivable of $3,600. At December 31, 20X6, the aging of accounts receivable indicated that Goode and Devlin will not collect $1,700 of its accounts receivable.

Journalize Goode and Devlin's

(a) Service revenue,

(b) Cash collections on account,

(c) Write-offs of uncollectible receivables, and

(d) Uncollectible-account expense for the year.

Explanations are not required. Prepare a T-account for Allowance for Uncollectible Accounts to show your computation of uncollectible-account expense for the year.

e) Show how the firm will report Accounts Receivable on its December 31 Balance Sheet.