The following events occur for Morris Engineering during 2021 and 2022, its first two years of operations.
Question:
The following events occur for Morris Engineering during 2021 and 2022, its first two years of operations.
February 2, 2021 Provide services to customers on account for $38,000.
July 23, 2021 Receive $27,000 from customers on account.
December 31, 2021 Estimate that 25% of uncollected accounts will not be received.
April 12, 2022 Provide services to customers on account for $51,000.
June 28, 2022 Receive $6,000 from customers for services provided in 2021.
September 13, 2022 Write off the remaining amounts owed from services provided in 2021.
October 5, 2022 Receive $45,000 from customers for services provided in 2022.
December 31, 2022 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 net accounts receivable at the end of 2021 and 2022.
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...
Step by Step Answer:
Requirement 1 February 2 2021 Debit Credit Accounts Receivable 38000 Service Revenue 38000 Provide s...View the full answer
Financial Accounting
ISBN: 978-1259914898
5th edition
Authors: David Spiceland, Wayne M. Thomas, Don Herrmann
