Question

Required information [The following information applies to the questions displayed below.] The following events occur for Morris Engineering during 2021 and 2022, its first two years of operations. February 2, 2021 Provide services to customers on account for $31,400. July 23, 2021 Receive $21,500 from customers on account. December 31, 2021 Estimate that 20% of uncollected accounts will not be received. April 12, 2022 Provide services to customers on account for $44,400. June 28, 2022 Receive $6,000 from customers for services provided in 2021. September 13, 2022 Write off the remaining amounts owed from services provided in 2021. October 5, 2022 Receive $39,500 from customers for services provided in 2022. December 31, 2022 Estimate that 20% of uncollected accounts will not be received. 2. Post transactions to the following accounts: Cash, Accounts Receivable, and Allowance for Uncollectible Accounts. Next Visit question mapQuestion 21 linked to 22 of 24 Total

Answer 1

The posting of transactions is as follows:

Allowance for Doubtful Accounts
Debit	Credit
Date	Particulars	Amount	Date	Particulars	Amount
31-Dec-21	To bal c/d	$          1,980	31-Dec-21	By Bad debts expense ($9900 x 20%)	$                    1,980
		$          1,980			$                    1,980
13-Sep-22	To Accounts receivables	$          3,900	1-Jan-22	By bal b/d	$                    1,980
31-Dec-22	To bal c/d	$              980	31-Dec-22	By Bad debts expense ($3900- $1980+ $980)	$                    2,900
		$          4,880			$                    4,880
Note:Since we need a credit balance of $ 980 ($4900 x 20%), therefore we have neutralied the bad debt expenses by $2900.
Cash
Debit	Credit
Date	Particulars	Amount	Date	Particulars	Amount
23-Jul-21	To Accounts Receivables	$        21,500	31-Dec-21	By bal c/d	$                 21,500
		$        21,500			$                 21,500
1-Jan-22	To bal b/d	$        21,500
28-Jun-22	To Accounts Receivables	$          6,000
5-Oct-22	To accounts receivable	$        39,500	31-Dec-22	By bal c/d	$                 45,500
		$        45,500			$                 45,500
Accounts Receivables
Debit	Credit
Date	Particulars	Amount	Date	Particulars	Amount
2-Feb-21	To service revenue	$        31,400	23-Jul-21	By cash	$                 21,500
			31-Dec-21	By bal C/D	$                    9,900
		$        31,400			$                 31,400
1-Jan-22	To bal b/d	$          9,900	28-Jun-22	By cash	$                    6,000
12-Apr-22	To service revenue	$        44,400	13-Sep-22	By allowance for doubtful debts ($9900 - $6000)	$                    3,900
			5-Oct-22	By cash	$                 39,500
			31-Dec-22	By bal c/d	$                    4,900
		$        54,300			$                 54,300

Please provide question 21 to be answered.