Repair had the activity More Info Debit on account 545000 of

Repair had the activity: More Info Debit on account, $545,000 of $19,000 d. Bad debt expense, estimated as 3 percent of service revenue Print Done

Solution

Journal entry :

Date	accounts & explanation	debit	credit
2016	Account receivable	545000
	Service revenue		545000
2016	Cash	575000
	Account receivable		575000
2016	Allowance for doubtful accounts	19000
	Account receivable		19000
2016	Bad debt expense (545000*3%)	16350
	Allowance for doubtful accounts		16350