Answered

Get clear, concise, and accurate answers to your questions on IDNLearn.com. Ask your questions and receive detailed and reliable answers from our experienced and knowledgeable community members.

g Required information Skip to question [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 $32,000. September 17, 2021 Receive $17,500 from customers on account. December 31, 2021 Estimate that 45% of accounts receivable at the end of the year will not be received. March 4, 2022 Provide services to customers on account for $47,000. May 20, 2022 Receive $10,000 from customers for services provided in 2021. July 2, 2022 Write off the remaining amounts owed from services provided in 2021. October 19, 2022 Receive $37,500 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. 3. Calculate net accounts receivable at the end of 2021 and 2022.

Sagot :

Anthougoidn

Answer:

The Underwood Corporation

Net Accounts Receivable:

2021 = $7,975 ($14,500 - $6,525)

2022: = $3,200 ($9,500 - $6,300)

Explanation:

a) Data and Calculations:

Accounts Receivable during year 2021 = $32,000

September 17, 2021 Cash received            (17,500)

December 31, 2021 Balance =                   $14,500

March 4, 2022 Services on account =       47,000

May 20, 2022 Cash received                    (10,000)

Bad Debts written off                                   (4,500)

October 19, 2022 Cash received              (37,500)

December 31, 2022 Balance =                   $9,500

Allowance for Doubtful Accounts

December 31, 2021  = $6,525 ($14,500 * 45%)

Bad Debts written off   (4,500)

December 31, 2022 = $4,275 ($9,500 * 45%)

December 31 Balance $6,300

b) The net accounts receivable is equal to the Balance of the Accounts Receivable minus the Allowance for Doubtful Accounts (all at December 31) for each year.

Thank you for contributing to our discussion. Don't forget to check back for new answers. Keep asking, answering, and sharing useful information. Thank you for choosing IDNLearn.com for your queries. We’re here to provide accurate answers, so visit us again soon.