Question

Required Information [The following information applies to the questions displayed below.] Part 2 of 3 The following events occur for The Underwood Corporation during 2021 and 2022. its first two years of operations. 1.66 points June 12, 2021 Provide services to customers on account for $36,800. September 17, 2021 Receive $21,5ee 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 $51,800. May 28, 2022 Receive $10,eee 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 $41,5ee 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. eBook Print 2. Post transactions to the following accounts: Cash Accounts Receivable, and Allowance for Uncollectible Accounts. References Cash Accounts Receivable December 31, 2021 0 December 31, 2021 December 31, 2022 0 December 31, 2022 0 Allowance for Uncollectible Accounts December 31, 2021 0 December 31, 2022

This is part 2 and 3 of the same problem, not different problems.

Answer 1

The Underwood Corporation Journal entries Date Account 12-Jun-21 Accounts Receivable Service Revenue Credit Calculation Debit $ 36,800 $ 36,800 $ 21,500 17-Sep-21 Cash Accounts Receivable $ 21,500 $ 6,885 =(36,800-21,500) *45% $ 6,885 31-Dec-21 Bad debts expense Allowance for Uncollectible Accounts Year 2022 4-Mar-22 Accounts Receivable Service Revenue $ 51,800 $ 51,800 $ 10,000 20-May-22 Cash Accounts Receivable $ 10,000 $ 5,300 =36,800-21,500-10,000 2-Jul-22 Allowance for Uncollectible Accounts Accounts Receivable $ 5,300 $ 41,500 19-Oct-22 Cash Accounts Receivable $ 41,500 $ 3,050 Below workings 31-Dec-22 Bad debts expense Allowance for Uncollectible Accounts $ 3,050 Workings Bad debts expense 31-Dec-21 Beginning Balance 2-Jul-22 Write offs 31-Dec-22 Unadjusted Balance 31-Dec-22 Adjusted Balance @ 45% 31-Dec-22 Bad debts expense $ $ $ $ $ 6,885 (5,300) 1,585 4,635 3,050 =10,300*45% -4,635-1,585

The Underwood Corporation T Accounts Date Debit Credit Date Cash Date Debit Credit Date Accounts Receivable 12-Jun-21 $ 36,800 $ 21,500 17-Sep-21 Date Debit Credit Date Allowance for Uncollectible Accounts $ 6,885 31-Dec-21 17-Sep-21 $ 21,500 31-Dec-21 $ 21,500 $ 6,885 31-Dec-21 31-Dec-21 $ 15,300 4-Mar-22 $ 51,800 20-May-22 $10,000 $ 10,000 20-May-22 $ 5,300 2-Jul-22 $ 41,500 19-Oct-22 2-Jul-22 $ 5,300 19-Oct-22 $ 41,500 $ 3,050 31-Dec-22 31-Dec-22 $ 73,000 31-Dec-22 $ 10,300 $ 4,635 31-Dec-22

The Underwood Corporation Total Accounts Receivable Allowance for Uncollectible Accounts Net Accounts Receivable 2021 15,300 (6,885) 8,415 2022 10,300 (4,635) 5,665