Question: The following events occur for The Underwood Corporation during 2015

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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