Question

The following events occur for The Underwood Corporation during 2015 and 2016, its first two years of operations.
June 12, 2015 Provide services to customers on account for $41,000.
September 17, 2015 Receive $25,000 from customers on account.
December 31, 2015 Estimate that 45% of accounts receivable at the end of the year will not be received.
March 4, 2016 Provide services to customers on account for $56,000.
May 20, 2016 Receive $10,000 from customers for services provided in 2015.
July 2, 2016 Write off the remaining amounts owed from services provided in 2015.
October 19, 2016 Receive $45,000 from customers for services provided in 2016.
December 31, 2016 Estimate that 45% 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 2015 and 2016.



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  • CreatedJuly 15, 2014
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