35) The following aging information pertains to Jacobsen Co.'s accounts receivable at December 31, 2021:

Days Outstanding		Amount					Estimated % Uncollectible
0-30		$	420,000						2	%
31-60			140,000						5	%
61-120			100,000						10	%
Over 120			120,000						20	%

During 2021, Jacobsen wrote off $18,000 in receivables and recovered $6,000 that had been written off in prior years. Jacobsen's December 31, 2020, allowance for uncollectible accounts was $40,000. Using the balance sheet approach, what amount of allowance for uncollectible accounts should Jacobsen report at December 31, 2021?

A) $55,400.

B) $28,000.

C) $49,400.

D) $31,400.

Problem 1

Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,800,000. The project was begun in 2020 and completed in 2021. Cost and other data are presented below:

2020 2021

Costs incurred during the year $ 450,000 $1,100,000

Estimated costs to complete 1,050,000 0

Billings during the year 400,000 1,400,000

Cash collections during the year 300,000 1,500,000

Assume that Beavis recognizes revenue on this contract over time according to percentage of completion.

Required:

1. Prepare all journal entries to record costs, billings, collections, and profit recognition for

2020

2. Prepare all journal entries to record costs, billings, collections, profit recognition and

completion of the project for 2021