Question

Required Information Problem 5-3A Record transactions related to accounts receivable (L05-3,5-4,5-5) [The following information applies to the questions 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 $30,808. September 17, 2021 Receive $16,580 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 $45,800. May 29, 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 $36,500 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. Problem 5-3A Part 3 3. Calculate net accounts receivable at the end of 2021 and 2022 2021 14,300 6.435 2022 9.300 Total accounts receivable Less: Allowance for uncollectible accounts S Net accounts receivable

Answer 1

Calculate following

	2021	2022
Total account receivable	14300	9300
Less: Allowance for doubtful accounts	-6435	(9300*45%) = -4185
Net account receivable	7865	5115