Perform the following accounting for the receivables of Patillo, Brown & Hill, an accounting firm, at December 31, 20X7. Start with the beginning balances for these T accounts: • Accounts Receivable, $80,000 • Allowance for Uncollectible Accounts, $9,000 Post the following 20X7 transactions to the T accounts:
a. Service revenue of $700,000, all on account
b. Collections on account, $720,000
c. Write offs of uncollectible accounts, $7,000
d. Uncollectible account expense (allowance method), $8,000
2. What are the ending balances of Accounts Receivable and Allowance for Uncollectible Accounts?
3. Show how Patillo, Brown & Hill will report accounts receivable on its balance sheet at December 31, 20X7.