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:
Accounts Receivable
Cash
(Estimate future bad debts)
Allowance for Uncollectible Accounts
Bad Debt Expense
(Provide services on account)
Service Revenue
Accounts Receivable
Allowance for Uncollectible Accounts
Cash
(Write off actual bad debts)
Accounts Receivable
(Receive cash on account)
Accounts Receivable
December 31, 2021
October 19, 2022
July 2, 2022
May 20, 2022
March 4, 2022
(Receive cash on account)
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
Requirement 3:
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
March 4, 2022
Estimated A/R that will not be received
Provide service to customers on account
Receive cash from customers for 2021 services
Write off remaining 2021 accounts
December 31, 2021
Estimated A/R that will not be received
December 31, 2022
October 19, 2022
July 2, 2022
May 20, 2022
Receive cash from customers for 2022 services
Student Name:
Class:
Estimated Estimated
Amount Percent Amount
Receivable Uncollectible Uncollectible
40,000$ 4% 1,600$
Date Account Debit Credit
(Received cash on account)
(Re-establish account previously written off)
(Write off actual bad debts)
Accounts Receivable
Allowance for Uncollectible Accounts
Accounts Receivable
Accounts Receivable
September 30, 2022
September 30, 2022
Requirement 4:
Requirement 3:
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:
More than 180 days past due
91 – 180 days past due
0 – 90 days past due
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:
Balance of allowance account at end of year
Customer account written off on 7/19/22
Collected written off account on 9/30/22
More than 180 days past due
Services provided during 2021
Additional Information:
Amount of 2021 services unpaid at end of year
(see above aging schedule)
Student Name:
Class:
Debit Credit
Interest Receivable (2023)
(Receive cash on note and interest)
Interest Revenue
Interest Receivable (2021)
Notes Receivable
Cash
(Adjust interest receivable)
Interest Revenue
December 1, 2024
December 31, 2023
Requirement 3:
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
Interest Revenue
Interest Receivable (2022)
(Adjust interest receivable)
Cash
Interest Receivable (2021)
(Receive annual interest)
Interest Revenue
Interest Revenue
Interest Receivable (2021)
December 1, 2022
December 31, 2021
December 31, 2022
90,000$
LIANG CHEMICAL
Given Data P05-08:
Provide services to customer on note
December 31, 2021 transactions:
Interest rate on note
Term of note in years