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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

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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 1 year ago
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