The following events occur for The Underwood Corporation during 2012 and 2013, its first two years of

Question:

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 of 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.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Corporation
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