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In the First Year of Operations, John's Repair Service Recognized

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Essay

In the first year of operations, John's Repair Service recognized $220,000 of service revenue on account. The ending accounts receivable balance was $15,100. Jake estimates that 3% of sales on account will not be collected; no accounts receivable had been written off by year end. Assume there were no other transactions affecting accounts receivable.
Required:What amount of cash was collected in Year 1?What amount of uncollectible accounts expense was recognized in Year 1?


Definitions:

Geologic Structure

The arrangement and relationship of rock layers and formations, shaped by tectonic forces, that reveals the history of Earth's crust.

Anticlines And Synclines

Geological features where rock layers are folded upwards to form ridges (anticlines) and downwards to form troughs (synclines), often due to tectonic forces.

Thrust Faults

A type of fault where rocks on one side are pushed up and over rocks on the other, often associated with mountain building.

Volcanic Center

A location on the Earth's surface that has been the site of multiple volcanic eruptions and activities over a long period.

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