Reference no: EM133004504

In May 2021, the paint mixing equipment maintenance services company, Colorín Color S.A .., provided services for a total price of $ 820,000 and gave its customers a discount of $ 74,200.

• All payment for services is made on credit and the amount will be paid in full in the month of July. The total cost of providing the services (labor, transportation, tools, etc.) was $ 310,000. The company estimates that 6% of its Accounts Receivable will be the provision for doubtful accounts.

• On June 1, one of the clients who owed $ 9,610 to the company informed it that it will be impossible to pay this debt and that they must wait for the judicial resolution on their bankruptcy declaration before making a collection claim.

Required:

Problem 1: Record the Accounts Receivable as of May 31, 2021 (which includes the calculation of the Net Accounts Receivable)

Problem 2: Register accounts receivable as of June 30, 2021