Emery Nurseries used the allowance method to record the following transactions, adjusting entries, and closing entries during the year ended December 31, 20--:

Feb. 9 Received 60% of the $5,000 balance owed by Patty’s Petunias, a bankrupt business, and wrote off the remainder as uncollectible.

May 28 Reinstated the account of Danielle Bell, which had been written off in the preceding year, and received $2,400 cash in full settlement.

Aug. 16 Wrote off the $8,200 balance owed by Rich Bouie as uncollectible.

Oct. 5 Reinstated the account of Bonnie McCelland, which had been written off in the preceding year, and received $3,600 cash in full settlement.

Dec. 28 Wrote off the following accounts as uncollectible, in compound entry form: Bloudeck & Rhodes, $14,450; Creative Landscapers, $16,100; Ramona Randol, $12,750.

31 Based on an aging analysis of the $980,000 of accounts receivable, it was estimated that $58,700 will be uncollectible. Made the adjusting entry.

31 Made the entry to close the appropriate account to Income Summary.

Selected accounts and beginning balances on January 1, 20--, are as follows:

122.1 Allowance for Bad Debts $52,000 credit

313 Income Summary ––

532 Bad Debt Expense ––

REQUIRED

1. Open the three selected accounts.

2. Enter the transactions and the adjusting and closing entries in a general journal. After each entry, post to the three accounts named.

3. Determine the net realizable value as of December 31.