Question

In: Accounting

The following events occur for Morris Engineering during 2018 and 2019, its first two years of...

The following events occur for Morris Engineering during 2018 and 2019, its first two years of operations.
  
February 2, 2018 Provide services to customers on account for $33,800.
July 23, 2018 Receive $23,500 from customers on account.
December 31, 2018 Estimate that 30% of uncollected accounts will not be received.
April 12, 2019 Provide services to customers on account for $46,800.
June 28, 2019 Receive $6,000 from customers for services provided in 2018.
September 13, 2019 Write off the remaining amounts owed from services provided in 2018.
October 5, 2019 Receive $41,500 from customers for services provided in 2019.
December 31, 2019 Estimate that 30% of uncollected accounts will not be received.

I can’t figure out this problem

Solutions

Expert Solution

Journal entry :

Date account and explanation debit credit
Feb 2,2018 Account receivable 33800
Service revenue 33800
(To record service revenue)
July 23, 2018 Cash 23500
Account receivable 23500
(to record amount received)
Dec 31,2018 Bad debt expense (10300*30%) 3090
Allowance for doubtful accounts 3090
(To record estimated bad debt)
Apr 12,2019 Account receivable 46800
Service revenue 46800
(To record service revenue)
June 28,2019 Cash 6000
Account receivable 6000
(To record amount received)
Sep 13,2019 Allowance for doubtful accounts (10300-6000) 4300
Account receivable 4300
(To record write off)
Oct 5,2019 Cash 41500
Account receivable 41500
(To record amount received)
Dec 31,2019 Bad debt expense (46800-41500)*30% 1590
Allowance for doubtful accounts 1590
(To record bad debt)

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

The following events occur for The Underwood Corporation during 2018 and 2019, its first two years...
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 $38,000. September 17, 2018 Receive $22,500 from customers on account. December 31, 2018 Estimate that 45% of accounts receivable at the end of the year will not be received. March 4, 2019 Provide services to customers on account for $53,000. May 20, 2019 Receive $10,000 from customers for services provided in 2018....
The following events occur for The Underwood Corporation during 2018 and 2019, its first two years...
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 $35,000. September 17, 2018   Receive $20,000 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 $50,000. May 20, 2019   Receive $10,000 from customers for services provided...
The following events occur for The Underwood Corporation during 2018 and 2019, its first two years...
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...
The following events occur for The Underwood Corporation during 2018 and 2019, its first two years...
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 $36,200. September 17, 2018 Receive $21,000 from customers on account. December 31, 2018 Estimate that 45% of accounts receivable at the end of the year will not be received. March 4, 2019 Provide services to customers on account for $51,200. May 20, 2019 Receive $10,000 from customers for services provided in...
The following events occur for The Underwood Corporation during 2021 and 2022, its first two years...
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....
The following events occur for The Underwood Corporation during 2021 and 2022, its first two years...
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 $35,000. September 17, 2021 Receive $20,000 from customers on account. December 31, 2021 Estimate that 40% of accounts receivable at the end of the year will not be received. March 4, 2022 Provide services to customers on account for $50,000. May 20, 2022 Receive $10,000 from customers for services provided in 2021....
Expert Computers was started in 2018. The company experienced the following accounting events during its first...
Expert Computers was started in 2018. The company experienced the following accounting events during its first year of operation: Started business when it acquired $40,000 cash from the issue of common stock. Purchased merchandise with a list price of $32,000 on account, terms 2/10, n/30. Paid off one-half of the accounts payable balance within the discount period. Sold merchandise on account for $28,000. Credit terms were 1/20, n/30. The merchandise had cost Expert Computers $16,000. Collected cash from the account...
Maben Company was started on January 1, 2018, and experienced the following events during its first...
Maben Company was started on January 1, 2018, and experienced the following events during its first year of operation: Acquired $35,000 cash from the issue of common stock. Borrowed $47,000 cash from National Bank. Earned cash revenues of $63,000 for performing services. Paid cash expenses of $52,500. Paid a $2,500 cash dividend to the stockholders. Acquired an additional $35,000 cash from the issue of common stock. Paid $12,000 cash to reduce the principal balance of the bank note. Paid $46,000...
Business Events and Transactions for September 2019: The following transactions occurred during the first week of...
Business Events and Transactions for September 2019: The following transactions occurred during the first week of September. • September 1- Pay the $3,175 August interest owed to the bank. Also make a $40,000 payment on the bank note principal. • September 1- The company purchased office supplies for the first time in September. They purchased $2,400 in supplies from Office Depot and paid for it in cash. • September 5- the company has collected $225,000 in cash on the August...
Leach Inc. experienced the following events for the first two years of its operations: Year 1:...
Leach Inc. experienced the following events for the first two years of its operations: Year 1: Issued $17,000 of common stock for cash. Provided $85,700 of services on account. Provided $43,000 of services and received cash. Collected $76,000 cash from accounts receivable. Paid $45,000 of salaries expense for the year. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 4 percent of the ending accounts receivable balance will be uncollectible. Closed the revenue account....
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT