Problem - The following events occur for the underwood corporation during 2012 and 2013, its first two years of operations.....
June 12, 2012 Provide services to customers on account for $35,000
September 17, 2012 Receive $20,000 from customers on account
December 31, 2012 Estimate that 40% of accounts receivable at the end if the year will not be received
March 4, 2013 Provide services to customers on account for $50,000
May 20, 2013 Receive $10,000 from customers for services provided in 2012
July 2, 2013 Write off the remaining amounts owed from services provided in 2012
October 19, 2013 Receive $40,000 from customers for services provided in 2013
December 31, 2013 Estimate that 40% of accounts receivable at the end of the year will not be received
Required:
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 2012 and 2013.