Student Name:
Class:
Date Account Debit Credit
41,000
41,000 <–Correct!
25,000
25,000 <–Correct!
Service Revenue
Accounts Receivable
Accounts Receivable
Cash
(Provide services on account)
Problem 05-03
McGraw-Hill
Instructor
September 17, 2018
June 12, 2018
2018 and 2019 Transactions
THE UNDERWOOD CORPORATION
Requirement 1:
(Receive cash on account)
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
December 31, 2019
(Write off actual bad debts)
Accounts Receivable
Allowance for Uncollectible Accounts
Bad Debt Expense
(Receive cash on account)
Accounts Receivable
December 31, 2018
October 19, 2019
July 2, 2019
May 20, 2019
March 4, 2019
(Receive cash on account)
Student Name:
Class:
Problem 05-03
McGraw-Hill
Instructor
Requirement 2:
25,000 41,000 25,000 7,200
2018 2019
Correct! Correct!
Requirement 3:
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 2018 and 2019:
THE UNDERWOOD CORPORATION
September 17, 2018
June 12, 2018
Receive cash from customers for 2019 services
March 4, 2019
Estimated A/R that will not be received
Provide service to customers on account
Receive cash from customers for 2018 services
Write off remaining 2018 accounts
December 31, 2018
Estimated A/R that will not be received
December 31, 2019
October 19, 2019
July 2, 2019
May 20, 2019
Student Name:
Class:
Estimated Estimated
Amount Percent Amount
Receivable Uncollectible Uncollectible
40,000$ 4% 1,600$
16,000 20% 3,200
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
Allowance for Uncollectible Accounts
September 30, 2019
September 30, 2019
Requirement 4:
July 19, 2019
12,950
12,950 <–Correct!
Requirement 2:
Age Group
0 – 90 days past due
Not yet due
Allowance for Uncollectible Accounts
Bad Debt Expense
Instructor
Transaction Entries
December 31, 2018
December 31, 2018
Aging Schedule
PEARL E. WHITE ORTHODONTIST
PEARL E. WHITE ORTHODONTIST
(Estimate future bad debts)
Problem 05-04
McGraw-Hill
Requirement 1:
Requirement 3:
More than 180 days past due
91 – 180 days past due
Estimated
Amount Percent
Receivable Uncollectible
40,000$ 4%
16,000 20%
590,000$
Balance of allowance account at end of year
Customer account written off on 7/19/19
Collected written off account on 9/30/19
80,000$
Services provided during 2018
Additional Information:
Amount of 2018 services unpaid at end of year
(see above aging schedule)
Age Group
Not yet due
0 – 90 days past due
December 31, 2018
Aging Schedule
PEARL E. WHITE ORTHODONTIST
Given Data P05-04:
More than 180 days past due
91 – 180 days past due
Student Name:
Class:
Debit Credit
Interest Receivable (2019)
Interest Revenue
(Receive annual interest)
Interest Receivable (2020)
(Receive cash on note and interest)
Interest Revenue
Interest Receivable (2020)
(Adjust interest receivable)
Interest Revenue
December 1, 2020
December 1, 2021
December 31, 2020
Requirement 3:
90,000
90,000 <–Correct!
750
750 <–Correct!
Service Revenue
(Adjust interest receivable)
Interest Revenue
Interest Receivable (2019)
(Provide services in exchange for a note)
Requirement 1:
Date
Problem 05-08
December 31, 2019
Account
McGraw-Hill
Instructor
December 31, 2018
Transactions
LIANG CHEMICAL
Notes Receivable
(Adjust interest receivable)
Interest Receivable (2018)
(Receive annual interest)
Interest Revenue
Interest Revenue
Interest Receivable (2018)
December 1, 2019
December 31, 2018
Requirement 2:
LIANG CHEMICAL
Given Data P05-08:
December 31, 2018 transactions:
Interest rate on note
Term of note in years
Provide services to customer on note