Question

Help Save & Exit 5 Check my Required information The following information applies to the questions displayed below.) Part 1 of 3 The following events occur for The Underwood Corporation during 2021 and 2022, its first two years of operations. points (8 02:19:10 June 12, 2021 Provide services to customers on account for $35,000. 1 September 17, 2021 Receive $20,000 from customers on account. December 31, 2021 Estimate that 40% of accounts receivable at the end of the year will not be received. March 4, 2022 Provide services to customers on account for 50,000. May 20, 2022 Receive $10,000 from customers for services provided in 2021 July 2, 2022 Write ott the remaining amounts owed from services provided in 2021. October 19, 2022 Receive $40,000 from customers for services provided in 2022. December 31, 2022 Estimate that 408 of accounts receivable at the end of the year will not be received. eBook Print References 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

Date	Account Titles & Explanations	Debit	Credit
June 12, 2021	Accounts Receivable	$35000
	Service Revenue		$35000
	(To record the services provided on account)
Sep 17, 2021	Cash	$20000
	Accounts Receivable		$20000
	(To record the cash collected)
Dec 31, 2021	Bad debt expense ($35000 - $20000) * 40%	$6000
	Allowance for uncollectible accounts		$6000
	(To record the bad debt expenses)
March 04, 2022	Accounts Receivable	$50000
	Service revenue		$50000
	(To record the services provided on account)
May 20, 2022	Cash	$10000
	Accounts Receivable		$10000
	(To record the cash collected)
July 2, 2022	Allowance for uncollectible accounts	$5000
	Accounts Receivable ($35000 - $20000 - $10000)		$5000
	(To write off the accounts owed)
Oct 19, 2022	Cash	$40000
	Accounts Receivable		$40000
	(To record the cash collected)
Dec 31, 2022	Bad debt expense [($50000 - $40000) * 40%] – ($6000 - $5000)	$3000
	Allowance for uncollectible accounts		$3000
	(To record the bad debt expenses)