Question

The following events occur for Morris Engineering during 2015 and 2016, its first two years of operations.
February 2, 2015 Provide services to customers on account for $ 38,000.
July 23, 2015 Receive $ 27,000 from customers on account.
December 31, 2015 Estimate that 25% of uncollected accounts will not be received.
April 12, 2016 Provide services to customers on account for $ 51,000.
June 28, 2016 Receive $ 6,000 from customers for services provided in 2015.
September 13, 2016 Write off the remaining amounts owed from services provided in 2015.
October 5, 2016 Receive $ 45,000 from customers for services provided in 2016.
December 31, 2016 Estimate that 25% of uncollected accounts 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 2015 and 2016.



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  • CreatedJuly 15, 2014
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