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, eee fron customers on account. December 31, 2021 Estimate that 40% of accounts receivable at the end of the year will not be received. Harch 4, 2022 Provide services to customers on account for $44,000. May 20, 2022 Receive $18, een fron customers for services provided in 2021. July 2, 2022 Write off the remaining amounts owed 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 December 31, 2022 December 31, 2022 Allowance for Uncollectible Accounts December 31, 2021 December 31, 2022

Answer 1

2.

Cash					Accounts receivable
Sept 17	$15,000				June 12	$29,000	$15,000	Sept 17
December 31,2021	$15,000				December 31,2021	$14,000
May 20	$10,000				Mar 4	$44,000	$10,000	May 20
Oct 19	$35,000						$4,000	July 2 [14000-10000]
							$35,000	Oct 19
December 31,2022	$60,000				December 31,2022	$9,000
Allowance for uncollectible accounts
		$5,600	December 31,2021 [14,000 x 40%]
July 2	$4,000	$2,000	Dec 31 [Bad debt expense: Balance amount]
		$3,600	December 31,2022 [9,000 x 40%]