Problem 5-1A Calculate the amount of revenue to recognize (LO5-1) Assume the following scenarios. Scenario 1: During 2021, IBM provides consulting services on its mainframe computer for $11,000 on account. The customer does not pay for those services until 2022. Scenario 2: On January 1, 2021, Gold's Gym sells a one-year membership for $1,200 cash. Normally, this type of membership would cost $1,600, but the company is offering a 25% "New Year's Resolution" discount. Scenario 3: During 2021, The Manitowoc Company provides shipbuilding services to the U.S. Navy for $450,000. The U.S. Navy will pay $150,000 at the end of each year for the next three years, beginning in 2021. Scenario 4: During 2021, Goodyear sells tires to customers on account for $35,000. By the end of the year, collections total $30,000. At the end of 2022, it becomes apparent that the remaining $5,000 will never be collected from customers. Required: For each scenario, calculate the amount of revenue to be recognized in 2021. Revenue recognized in 2021 Scenario 1 Scenario 2 Scenario 3 Scenario 4 Required information Problem 5-3A Record transactions related to accounts receivable (LO5-3,5-4,5-5) The following information applies to the questions displayed below.) The following events occur for The Underwood Corporation during 2021 and 2022, its first two years of operations. June 12, 2021 Provide services to customers on account for $41,000. September 17, 2021 Receive $25,000 from customers on account. December 31, 2021 Estimate that 458 of accounts receivable at the end of the year will not be received. March 4, 2022 Provide services to customers on account for $56,000. May 20, 2022 Receive $10,000 from customers for services provided in 2021. July 2, 2022 Write of the remaining amounts owed from services provided in 2021. October 19, 2022 Receive $ 45,000 from customers for services provided in 2022. December 31, 2022 Estimate that 45% of accounts receivable at the end of the year will not be received. Problem 5-3A Part 1 Required: 1. Record transactions for each date. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 3 4 5 6 7 8 Provide services to customers on account for $41,000. Note: Enter debits before credits. General Journal Debit Credit Date June 12, 2021 Record entry Clear entry View general journal 2. Post transactions to the following accounts: Cash, Accounts Receivable, and Allowance for Uncollectible Accounts. Cash Accounts Receivable December 31, 2021 0 December 31, 2021 0 December 31, 2022 0 December 31, 2022 0 Allowance for Uncollectible Accounts December 31, 2021 0 December 31, 2022 3. Calculate net accounts receivable at the end of 2021 and 2022. 2021 2022 Total accounts receivable Net accounts receivable
