In the First Year of Operations,2016,John's Repair Service Recognized $220,000

question 30

Essay

In the first year of operations,2016,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.
a)What amount of cash was collected in 2016?
b)What amount of uncollectible accounts expense was recognized in 2016?

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Definitions:

Coverture

A legal doctrine whereby, upon marriage, a woman's legal rights and obligations were subsumed by those of her husband, according to common law.

Mestizos

Individuals of mixed European and Indigenous American descent, a term primarily used in Latin America to describe a major cultural and demographic group.

Caravel

A fifteenth-century European ship capable of long-distance travel.

Pueblo Revolt

A 1680 uprising of indigenous Pueblo people against Spanish colonizers in present-day New Mexico, aiming to restore native autonomy and cultural practices.