vents occur for Wainwright Engineering during 2024 and 2025, its first two 4 Provide services to customers on account for $26,000. Receive $17,000 from customers on account. 24 Estimate that 20 % of uncollected accounts will not be received. Provide services to customers on account for $39,000. Receive $6,000 from customers for services provided in 2024. 925 Write off the remaining amounts owed from services provided in 2024. Receive $35,000 from customers for services provided in 2025. Estimate that 20 % of uncollected accounts will not be received. 25
vents occur for Wainwright Engineering during 2024 and 2025, its first two 4 Provide services to customers on account for $26,000. Receive $17,000 from customers on account. 24 Estimate that 20 % of uncollected accounts will not be received. Provide services to customers on account for $39,000. Receive $6,000 from customers for services provided in 2024. 925 Write off the remaining amounts owed from services provided in 2024. Receive $35,000 from customers for services provided in 2025. Estimate that 20 % of uncollected accounts will not be received. 25
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
A-3
Transcribed Image Text:Problem 5-3B (Algo) Record transactions related to accounts receivable (LO5-3, 5-4, 5-5)
The following events occur for Wainwright Engineering during 2024 and 2025, its first two years of operations.
February 2, 2024
July 23, 2024
Provide services to customers on account for $26,000.
Receive $17,000 from customers on account.
Estimate that 20% of uncollected accounts will not be received.
Provide services to customers on account for $39,000.
Receive $6,000 from customers for services provided in 2024.
Write off the remaining amounts owed from services provided in 2024.
Receive $35,000 from customers for services provided in 2025.
Estimate that 20% of uncollected accounts will not be received.
December 31, 2024
April 12, 2025
June 28, 2025
September 13, 2025
October 5, 2025
December 31, 2025
Required:
1. Record transactions for each date.
2. Post transactions to the following accounts: Cash, Accounts Receivable, and Allowance for Uncollectible Accounts.
3. Calculate net accounts receivable reported in the balance sheet at the end of 2024 and 2025.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Calculate net accounts receivable reported in the balance sheet at the end of 2024 and 2025.
Total accounts receivable
Net accounts receivable
2024
< Required 2
2025
Required 3 >
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