Question

Required information [The following information applies to parts a-c displayed below.] The following events occur for The Underwood Corporation during 2021 and 2022, its first two years of operations.

June 12, 2021 Provide services to customers on account for $39,800.

September 17, 2021 Receive $24,000 from customers on account.

December 31, 2021 Estimate that 45% of accounts receivable at the end of the year will not be received.

March 4, 2022 Provide services to customers on account for $54,800.

May 20, 2022 Receive $10,000 from customers for services provided in 2021.

July 2, 2022 Write off the remaining amounts owed from services provided in 2021.

October 19, 2022 Receive $44,000 from customers for services provided in 2022.

December 31, 2022 Estimate that 45% of accounts receivable at the end of the year will not be received.

a.  Record transactions for each date.

(general journal)

b. Post transactions to the following accounts: Cash, Accounts Receivable, and Allowance for Uncollectible Accounts.

c. Calculate net accounts receivable at the end of 2021 and 2022.

	2021 2022   Total accounts receivable Net accounts receivable

Answer 1

1)	Date	General Journal				Debit	Credit
	6/12/2018	Accounts receivable				39,800
		sales					39,800
	7/17/2018	cash				24,000
		Accounts receivable					24,000
	12/31/2019	Bad debts expense				7110
		Allowance for uncollectible accounts					7110
	3/4/2019	Accounts receivable				54,800
		sales					54,800
	5/20/2019	cash				10000
		Accounts receivable					10000
	7/2/2019	Allowance for uncollectible accounts				5800
		Accounts receivable					5800
	10/19/2019	cash				44,000
		Accounts receivable					44,000
	12/31/2019	Bad debts expense				3,550
		Allowance for uncollectible accounts					3,550
2)		Cash					Accounts receivable
	9/17/2018	24,000				6/12/2018	39,800	24,000	9/17/2018
	12/31/2018	24,000				12/31/2018	15,800
	1/1/2019	24,000				1/1/2019	15,800	10000	5/20/2019
	5/20/2019	10,000				3/4/2019	54,800	5800	7/2/2019
	10/19/2019	44,000						44,000	10/19/2019
	12/31/2019	78,000				12/31/2019	10,800
	Allowance for uncollectible accounts
			7110	12/31/2018
	7/2/2019	5,800	7110	1/1/2019
			3,550	12/31/2019
			4,860	12/31/2019
3)					2018	2019
	Total account recievable				15,800	10,800
	less:Allowance for uncollectible accounts				7110	4,860
	Net realizable value				8,690	5,940