The following events occur for Morris Engineering during 2015 and 2016, its first two years of operations.
Question:
The following events occur for Morris Engineering during 2015 and 2016, its first two years of operations.
February 2, 2015 Provide services to customers on account for $ 38,000.
July 23, 2015 Receive $ 27,000 from customers on account.
December 31, 2015 Estimate that 25% of uncollected accounts will not be received.
April 12, 2016 Provide services to customers on account for $ 51,000.
June 28, 2016 Receive $ 6,000 from customers for services provided in 2015.
September 13, 2016 Write off the remaining amounts owed from services provided in 2015.
October 5, 2016 Receive $ 45,000 from customers for services provided in 2016.
December 31, 2016 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 the net realizable value of accounts receivable at the end of 2015 and 2016.
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 2015 Debit Credit Accounts Receivable 38000 Service Revenue 38000 Provide s...View the full answer
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
