The following events occur for The Underwood Corporation during 2018 and 2019, its first two years of operations.
June 12, 2018 Provide services to customers on account for $29,000. September 17, 2018 Receive $15,000 from customers on account. December 31, 2018 Estimate that 40% of accounts receivable at the end of the year will not be received. March 4, 2019 Provide services to customers on account for $44,000. May 20, 2019 Receive $10,000 from customers for services provided in 2018. July 2, 2019 Write off the remaining amounts owed from services provided in 2018. October 19, 2019 Receive $35,000 from customers for services provided in 2019. December 31, 2019 Estimate that 40% of accounts receivable at the end of the year will not be received.
1. Record transactions for each date.
2. Calculate the net realizable value of accounts receivable at the end of 2018 and 2019.