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Events occur for The Underwood Corporation

The following events occur for The Underwood Corporation during 2012 and 2013, its first two years of operations

12-Jun-12 Provide services to customers on account for $35,000.
17-Sep-12 Receive $20,000 from customers on account
31-Dec-12 Estimate that 40% of accounts receivable at the end of the year will not be received
4-Mar-13 Provide services to customers on account for $50,000
20-May-13 Receive $10,000 from customers for services provided in 2012.
2-Jul-13 Write off the remaining amounts owed from services provided in 2012
19-Oct-13 Receive $40,000 from customers for services provided in 2013
31-Dec-13 Estimate that 40% of accounts receivable at the end of the year will not be received

Required:

1. Record transaction 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 2012 and 2013

Solution Summary

The events which occur for The Underwood Corporations are examined.

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