Professional Documents
Culture Documents
Brubacher Service Company Sells For Cash and On Account by
Brubacher Service Company Sells For Cash and On Account by
By #6632
Brubacher Service Company sells for cash and on account By
Brubacher Service Company sells for cash and on account. By selling on credit, Brubacher
cannot expect to collect 100% of its accounts receivable. At December 31, 2017, and 2016,
respectively, Brubacher reported the following on its balance sheet (in thousands of dollars):
During the year ended December 31, 2017, Brubacher earned service revenue and collected
cash from customers. Bad debt expense for the year was $335 thousand and Brubacher wrote
off uncollectible accounts receivable.
Requirements
1. Prepare T-accounts for Accounts Receivable and Allowance for Uncollectibles, and insert the
December 31, 2016, balances as given.
2. Journalize the following transactions of Brubacher for the year ended December 31, 2017.
Explanations are not required.
4. Compute the ending balances for the two T-accounts, and compare to the Brubacher
1/2
5. Show what Brubacher should report on its income statement for the year ended December
31, 2017?
ANSWER
http://paperinstant.com/downloads/brubacher-service-company-sells-for-cash-and-on-account-
by/
2/2
Powered by TCPDF (www.tcpdf.org)