Question

The following events occur for The Underwood Corporation during 2018 and 2019, its first two years of operations.
  
  

June 12, 2018   Provide services to customers on account for $29,000.
September 17, 2018   Receive $15,000 from customers on account.
December 31, 2018   Estimate that 40% of accounts receivable at the end of the year will not be received.
March 4, 2019   Provide services to customers on account for $44,000.
May 20, 2019   Receive $10,000 from customers for services provided in 2018.
July 2, 2019   Write off the remaining amounts owed from services provided in 2018.
October 19, 2019   Receive $35,000 from customers for services provided in 2019.
December 31, 2019   Estimate that 40% of accounts receivable at the end of the year will not be received.

1. Record transactions for each date.

2. Post transactions to the following accounts: Cash, Accounts Receivable, and Allowance for Uncollectible Accounts.

3. Calculate the net realizable value of accounts receivable at the end of 2018 and 2019.

Answer 1

1)	Date	General Journal				Debit	Credit
	6/12/2018	Accounts receivable				29,000
		sales					29,000
	7/17/2018	cash				15,000
		Accounts receivable					15,000
	12/31/2019	Bad debts expense				5600
		Allowance for uncollectible accounts					5600
	3/4/2019	Accounts receivable				44,000
		sales					44,000
	5/20/2019	cash				10000
		Accounts receivable					10000
	7/2/2019	Allowance for uncollectible accounts				4000
		Accounts receivable					4000
	10/19/2019	cash				35,000
		Accounts receivable					35,000
	12/31/2019	Bad debts expense				2,000
		Allowance for uncollectible accounts					2,000
2)		Cash					Accounts receivable
	9/17/2018	19,000				6/12/2018	29,000	15,000	9/17/2018
	12/31/2018	19,000				12/31/2018	14,000
	1/1/2019	19,000				1/1/2019	14,000	10000	5/20/2019
	5/20/2019	10,000				3/4/2019	44,000	4000	7/2/2019
	10/19/2019	39,000						35,000	10/19/2019
	12/31/2019	68,000				12/31/2019	9,000
	Allowance for uncollectible accounts
			5600	12/31/2018
	7/2/2019	4,000	5600	1/1/2019
			2,000	12/31/2019
			3,600	12/31/2019
3)					2018	2019
	Total account recievable				14,000	9,000
	less:Allowance for uncollectible accounts				5600	3,600
	Net realizable value				8,400	5,400