In: Accounting
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 $38,600. | |||
September | 17, | 2021 | Receive $23,000 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 $53,600. | |||
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 $43,000 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.)
2. Post transactions to the following accounts:
Cash, Accounts Receivable, and Allowance for Uncollectible
Accounts.
3. Calculate net accounts receivable at the end of
2021 and 2022.
1.
2.
3.
Net accounts receivable at the end of 2021 = 15,600-7,020 = 8,580
Net accounts receivable at the end of 2022 =10,600-4,770 = 5,830