Question

1/

Account with a normal credit balance includ: (select all that apply)

a- accont receivable

b- allowance for uncollectible accounts

c-bad dept expense

d-cash

e- sale revenue

2/

On March 12, Medical Waste Services provides services on account to Grace Hospital for $11,000, terms 2/10,n/30. Grace pays for those services on March 20. Required: For Medical Waste Services, record the service on account on March 12 and the collection of cash on March 20. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the service revenue on account. Note: Enter debits before credits. General Journal Debit Credit Date March 12

Answer 1

1. Credit balances :

b) allowance for uncollectible accounts.

e) sales revenue.

Explanation:

All assets and expenses have debit balances and all liabilities and incomes or revenues have credit balances

Accounts receivable and cash are assets have debit balance,

Allowence for uncollectible accounts and sales revenue have credit balance where as bad debt expenses are written off from the accounts receivable, so it doesn't have specific balance.

2.

1.

Date	General journal	Debit	Credit
March 12	Accounts receivable	$11,000
	Service Revenue		$11,000
	(To record service revenue on account)

2.

Date	General journal	Debit	Credit
March 20	Cash	$10,780
	Service discount ($11,000 × 2%)	$220
	Accounts receivable		$11,000
	(To record cash received on account after providing 2% discount)