Task: The following events occur for The Underwood Corporation during 2012 and 2013, its first two years of operations
12-Jun-12 Provide services to customers on account for $35,000.
17-Sep-12 Receive $20,000 from customers on account
31-Dec-12 Estimate that 40% of accounts receivable at the end of the year will not be received
4-Mar-13 Provide services to customers on account for $50,000
20-May-13 Receive $10,000 from customers for services provided in 2012.
2-Jul-13 Write off the remaining amounts owed from services provided in 2012
19-Oct-13 Receive $40,000 from customers for services provided in 2013
31-Dec-13 Estimate that 40% of accounts receivable at the end of the year will not be received
Required to do:
1. Record transaction 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 2012 and 2013