Question

Required information [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 $41,000. September 17, 2021 Receive $25,000 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 $56,000. 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 $45,000 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. Required: 1. Record transactions for each date. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

Journal entry

Date	General Journal	Debit	Credit
June 12	Account receivable	41000
	Service revenue		41000
Sep 17	Cash	25000
	Account receivable		25000
Dec 31	Bad debt expense (41000-25000)*45%	7200
	Allowance for doubtful accounts		7200
Mar 4	Account receivable	56000
	Service revenue		56000
May 20	Cash	10000
	Account receivable		10000
July 2	Allowance for doubtful accounts	16000
	Account receivable		16000
Oct 19	Cash	45000
	Account receivable		45000
Dec 31	Bad debt expense (1000*45%+8800)	9250
	Allowance for doubtful accounts		9250