Using the Following Transactions for 2010,show How the T Account

question 122

Essay

Using the following transactions for 2010,show how the T account below would appear after all appropriate postings have been made.Assume an opening balance of $900.
$\begin{array}{lrl}\text { Feb. } & 13 & \text { Wrote off an individual account for } \$ 1,000 . \\& 21 & \text { Reinstated the account written off on February } 13 . \\\text { July } &8 & \text { Wrote off an individual account for } \$ 700 . \\\text { Dec. } &31 & \text { Made year-end adjustment of } \$ 800 \text { for estimated uncollectible accounts. }\end{array}$

$$\begin{array}{l}\text { Allowance for Uncollectible Accounts }\\\begin{array} { l | l r } \hline\quad \quad \quad \quad \quad \quad \quad \quad & { 1 / 1 } \quad \quad \quad & 900 \\&\end{array}\end{array}$$

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Definitions:

Cost Center

A department or unit within an organization that does not directly add to profit but still incurs costs, such as HR or IT department.

Service Departments

Units within a company that provide support services to other departments but do not directly generate revenue.

Operating Departments

Divisions or units within an organization directly involved in its core business activities, responsible for producing the goods or services it offers.

Income Statements

Reports that detail the revenue, expenses, and profitability of a company over a defined accounting period, showing its financial performance.