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Question: (Accounting for uncollectible accounts receivable) South Salem Day Care Center is a not-for-profit organization that provides day care services. Prepare journal entries for the center to record the following events. After making all the journal entries, calculate the net realizable value of the center's accounts receivable.
1. The center billed its clients $120,000 for day care services during the year.
2. The center received $105,000 from its clients in payment of the bills.
3. The center established an allowance for uncollectible accounts receivable in the amount of 10 percent of its outstanding receivables.
4. The center could not locate three clients who owed a total of $800, and it decided to write off their accounts as being uncollectible.
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