Question

Required information [The following information applies to the questions displayed below.] The following events occur for Morris Engineering during 2021 and 2022, its first two years of operations. February 2, 2021 Provide services to customers on account for $31,400. July 23, 2021 Receive $21,500 from customers on account. December 31, 2021 Estimate that 20% of uncollected accounts will not be received. April 12, 2022 Provide services to customers on account for $44,400. June 28, 2022 Receive $6,000 from customers for services provided in 2021. September 13, 2022 Write off the remaining amounts owed from services provided in 2021. October 5, 2022 Receive $39,500 from customers for services provided in 2022. December 31, 2022 Estimate that 20% of uncollected accounts will not be received. 3. Calculate net accounts receivable at the end of 2021 and 2022.

Answer 1

	2021	2022
Total Accounts Receivable	$ 9,900 ( $ 31,400 (-) $ 21,500)	$ 4,900
Less: Allowance for Doubtful Accounts	($ 1,980) ( $ 9,900 x 20% )	($ 980) ( $ 4,900 x 20% )
Net Accounts Receivable	$ 7,920	$ 3,920
Particulars	Amount (in $ )
Accounts receivable balance in 2021	$ 9,900
Add: Services Provided	$ 44,400
Less: Collections for Services Provided	($ 6,000)
Less: Amounts Writen off                ( $ 9,900 (-) $ 6,000)	($ 3,900)
Less: Collections for Services Provided	($ 39,500)
Accounts receivable balance in 2022	$ 4,900