Johnsen Company Had Service Revenue on Account for the Year

question 148

Essay

Johnsen Company had service revenue on account for the year of $300,000 and cash collections of $130,000.During the year,uncollectible accounts receivable of $2,000 were written off.At December 31,an aging of accounts receivable indicated that Johnsen Company will not collect $10,000 of its accounts receivable.Johnsen Company had a $2,100 credit balance in the Allowance for Uncollectible Accounts at the beginning of the year.
Required:
1.Journalize the entries to record (1)the service revenue,(2)the cash collections,(3)the write-off of the uncollectible receivables and (4)the year end entry to record Uncollectible-Account Expense.Ignore Cost of Goods Sold.Explanations are not required.

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Definitions:

Linguistic Determinism

The theory that language determines thought, and that linguistic categories limit and determine cognitive categories.

Linguistic Relativism

The theory that the structure of a language affects its speakers' worldview or cognition, also known as the Sapir-Whorf hypothesis.

Longitudinal Study

Research design that involves repeated observations of the same variables (such as people) over short or long periods of time, often years or decades.

PTSD

Post-traumatic stress disorder, a mental health condition triggered by experiencing or witnessing a terrifying event, characterized by flashbacks, nightmares, and severe anxiety.