Services performed for customers through February but unbilled and uncollected were $
Received notice that a customer who was billed $ for services performed February has filed for bankruptcy. Teal Mountain Cleaning Services does not expect to collect any portion of this outstanding receivable.
Teal Mountain Cleaning Services uses the allowance method to estimate bad debts. Teal Mountain Cleaning Services estimates that of its monthend receivables will not be collected.
Record month of depreciation for the floor equipment. Use the straightline method, an estimated life of years, and $ salvage value.
Record month of insurance expense.
An inventory count shows $ of supplies on hand at February
One week of services were performed for the customer who paid in advance on February
Accrue for wages owed through February
Accrue for interest expense for month.
Karen estimates a income tax rate. Hint: Prepare an income statement up to "income before taxes" to help with the income tax calculation.
