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Practice Exercises (2) Exercise 1: GreenLawn Company uses the allowance method for its accounts receivable...

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Accounting

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Practice Exercises (2) Exercise 1: GreenLawn Company uses the allowance method for its accounts receivable and uncollectibles. On April 30, 2012, the company reported the following information on its balance sheet: Accounts receivable Less: Allowance for doubtful accounts $50,000 $5,000 During May 2012, the company had the following transactions. (1) On May 3rd, GreenLawn provided mowing service of $2.000 to a local school. The school paid GreenLawn $2,000 in cash on May 5" (2) On May 5h, GreenLawn acquired additional equipment of $1.500. GreenLawn paid cash. (3) On May 10, GreenLawn collected accounts receivable in cash totaled $20,000. ay 16n, GreenLawn provided mowing service on credit for $10,000. The customers promised to pay in the coming three months. May 26", GreenLawn received and thus recovered $3,000 from its bad debts previously written off as uncollectibles in April 2012. (i.e., GreenLawn previously wrote off $3,000 from a customer's A/R, but e in May.) (5) On (6) On May 30h, GreenLawn wrote off a $1,000 account from a customer, as it was confi that the customer went bankrupt and couldn't pay. Requirement I: Prepare journal entries for above transactions in May 2012. Debit Credit Date Accounts

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