Question
The following events occur for Messer Engineering during 2024 and 2025, its first two years of operations. February 2, 2024 Provide services to customers on
The following events occur for Messer Engineering during 2024 and 2025, its first two years of operations.
| February 2, 2024 | Provide services to customers on account for $28,400. |
|---|---|
| July 23, 2024 | Receive $19,000 from customers on account. |
| December 31, 2024 | Estimate that 25% of uncollected accounts will not be received. |
| April 12, 2025 | Provide services to customers on account for $41,400. |
| June 28, 2025 | Receive $6,000 from customers for services provided in 2024. |
| September 13, 2025 | Write off the remaining amounts owed from services provided in 2024. |
| October 5, 2025 | Receive $37,000 from customers for services provided in 2025. |
| December 31, 2025 | Estimate that 25% of uncollected accounts will not be received. |
Required:
1. Record transactions for each date.
Provide services to customers on account for $28,400.
2
Receive $19,000 from customers on account.
3
Estimate that 25% of uncollected accounts will not be received.
4
Provide services to customers on account for $41,400.
5
Receive $6,000 from customers for services provided in 2024.
6
Write off the remaining amounts owed from services provided in 2024.
7
Receive $37,000 from customers for services provided in 2025.
8
Estimate that 25% of uncollected accounts will not be received.
2. Post transactions to the following accounts: Cash, Accounts Receivable, and Allowance for Uncollectible Accounts.
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3. Calculate net accounts receivable reported in the balance sheet at the end of 2024 and 2025.
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