98.In the first year of operations, 2013, Jake's Repair Service recognized $110,000 of service revenue on account. The ending accounts receivable balance was $7,550. Jake estimates that 3% of sales on...

98.In the first year of operations, 2013, Jake's Repair Service recognized $110,000 of service revenue on account. The ending accounts receivable balance was $7,550. Jake estimates that 3% of sales on account will not be collected; no accounts receivable had been written off by year end. Assume there were no other transactions affecting accounts receivable.


a) What amount of cash was collected in 2013?
b) What amount of uncollectible accounts expense was recognized in 2013?

99.What is aging of accounts receivable, and how is it used to account for uncollectible accounts?

100.Under what condition is the direct write-off method of accounting for uncollectible accounts acceptable under GAAP?

101.What type of transaction is the write-off of an uncollectible account using the allowance method? (asset source, asset use, asset exchange, or claims exchange)

102.What are some of the costs a business incurs in making credit sales to customers? What are some of the benefits of making credit sales?