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Student Name:
Class:
Date Account Debit Credit
41,000
41,000 <--Correct!
25,000
25,000 <--Correct!
Service Revenue
Accounts Receivable
Accounts Receivable
(Receive cash on account)
Cash
(Provide services on account)
Problem 05-03
McGraw-Hill
Instructor
September 17, 2021
June 12, 2021
2021 and 2022 Transactions
THE UNDERWOOD CORPORATION
Requirement 1:
Student Name:
Class:
Problem 05-03
McGraw-Hill
Instructor
3,750
3,750 <--Correct!
December 31, 2022
Allowance for Uncollectible Accounts
Bad Debt Expense
(Estimate future bad debts)
Student Name:
Class:
Problem 05-03
McGraw-Hill
Instructor
Requirement 2:
25,000 41,000 25,000 7,200
Uncollectible Accts.
Allowance for
Accounts Receivable
Cash
T-Accounts
THE UNDERWOOD CORPORATION
41,000$
25,000$
Given Data P05-03:
Receive cash from customers on account
Provide service to customers on account
Transactions for 2021 and 2022:
THE UNDERWOOD CORPORATION
September 17, 2021
June 12, 2021
Student Name:
Class:
Estimated Estimated
Amount Percent Amount
Receivable Uncollectible Uncollectible
40,000$ 4% 1,600$
Date Account Debit Credit
12,950
12,950 <--Correct!
Requirement 2:
Age Group
Not yet due
Allowance for Uncollectible Accounts
Bad Debt Expense
Instructor
Transaction Entries
December 31, 2021
December 31, 2021
Aging Schedule
PEARL E. WHITE ORTHODONTIST
PEARL E. WHITE ORTHODONTIST
(Estimate future bad debts)
Problem 05-04
McGraw-Hill
Requirement 1:
Estimated
Amount Percent
Receivable Uncollectible
40,000$ 4%
16,000 20%
11,000 25%
Age Group
Not yet due
0 - 90 days past due
91 - 180 days past due
December 31, 2021
Aging Schedule
PEARL E. WHITE ORTHODONTIST
Given Data P05-04:
Student Name:
Class:
Debit Credit
90,000
90,000 <--Correct!
9,000 <--Correct!
750
8,250
Cash
Interest Receivable (2022)
Interest Revenue
(Receive annual interest)
Service Revenue
(Adjust interest receivable)
(Provide services in exchange for a note)
Requirement 1:
Date
Requirement 2:
Problem 05-08
December 1, 2023
Account
McGraw-Hill
Instructor
December 31, 2021
Transactions
LIANG CHEMICAL
Notes Receivable
90,000$
LIANG CHEMICAL
Given Data P05-08:
Provide services to customer on note
December 31, 2021 transactions:
