Question

Patrick Auto Detailers provides custom car detailing services for the discriminating exotic car owner. During 2015 their total credit sales were $750,000. They had a beginning balance of $275,000 in Accounts Receivable. The following schedule provides a summary of their closing A/R and their ages. In addition to this their beginning balance in the Allowance for Uncollectible Accounts was $72,000. Cash collections were $715,000. Required: Post beginning balances to t-accounts Record all transactions indicated by the facts given above Determine the amount of accounts written off as uncollectible Make the journal entry to recognize the accounts written off Determine bad debt expense for 2015 Make the appropriate journal entry Update t-accounts to reflect all transactions written above.