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 $29,000. September 17, 2021 Receive $15,000 from customers on account. December 31, 2021 Estimate that 405 of accounts receivable at the end of the year will not be received. March 4, 2022 Provide services to customers on account for $44.000. May 20, 2022 Receive $10,000 from customers for services provided in 2021. July 2, 2022 Write off the remaining amounts oved from services provided in 2021. October 19, 2022 Receive $35,000 from customers for services provided in 2022. December 31, 2022 Estimate that 40% of accounts receivable at the end of the year will not be received. 2. Post transactions to the following accounts: Cash, Accounts Receivable, and Allowance for Uncollectible Accounts. Cash Accounts Receivable December 31, 2021 | December 31, 2021 0 December 31, 2022 December 31, 2022 0 Allowance for Uncollectible Accounts December 31, 2021 0 December 31, 2022

Answer 1

Cash 17-Sep-21 To Accounts Receivable 150001 31-Dec-21 By balance c/d 15000 12-Jun-21 To Service Revenue 15000 60000 KL Accounts Receivable 29000 17-Sep-21 By Cash 31-Dec-21 By balance c/d 29000 14000 20-May-22 By Cash 44000 2-Jul-22 By Allowance for und 19-Oct-22 By Cash 31-Dec-21 By balance c/d 58000 31-Dec-22 By balance c/d 15000 15000 10000 35000 60000 1-Jan-22 To Balance b/d 20-May-22 To Accounts Receivable 19-Oct-22 To Accounts Receivable 1-Jan-22 To Balance b/d 4-Mar-22 To Service Revenue 15000 14000 29000 10000 4000 35000 9000 58000 60000 Allowance for uncollectible accounts 5600 31-Dec-21 By Bad Debt 31-Dec-21 To Balance c/d 5600 56001 5600 2-Jul-22 To Accounts Receivable 31-Dec-21 To Balance c/d 40001 5200 1-Jan-22 To Balance b/d 31-Dec-22 By Bad Debt 5600 3600 9200 9200 Working notes- 2021 Allowance for uncollectible accounts estimate=29000-15000 = 40% of 14000 = 5600 Write offremaining amount owed in 2021 in 2022=29000-15000-10000 = 4000 2022 Allowance for uncollectible accounts estimate=44000-35000 = 9000