The following transactions were completed by Clark Management Company during the current fiscal year ended December 31:

that \(\$ 16,750\) will be uncollectible. Journalized the adjusting entry.
{Instructions}
1. Record the January 1 credit balance of \(\$ 12,550\) in a \(\mathrm{T}\) account for Allowance for Doubtful Accounts.
2. Journalize the transactions. Post each entry that affects the following selected \(T\) accounts and determine the new balances:

3. Determine the expected net realizable value of the accounts receivable as of December 31 .
4. Assuming that instead of basing the provision for uncollectible accounts on an analysis of receivables, the adjusting entry on December 31 had been based on an estimated expense of \(1 / 4\) of \(1 \%\) of the net sales of \(\$ 7,126,000\) for the year, determine the following:

a. Bad debt expense for the year.

b. Balance in the allowance account after the adjustment of December 31.

c. Expected net realizable value of the accounts receivable as of December 31.

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July 5. Received 70% of the $21,000 balance owed by Dockins Co., a bankrupt busi- ness, and wrote off the remainder as uncollectible. Sept. 21. Reinstated the account of Bart Tiffany, which had been written off in the pre- ceding year as uncollectible. Journalized the receipt of $4,875 cash in full pay- ment of Tiffany's account. Oct. 19. Wrote off the $6,275 balance owed by Ski Time Co., which has no assets. Nov. 6. Reinstated the account of Kirby Co., which had been written off in the preced- ing year as uncollectible. Journalized the receipt of $4,750 cash in full payment of the account. Dec. 31. Wrote off the following accounts as uncollectible (compound entry): Maxie Co., $2,150; Kommers Co., $3,600; Helena Distributors, $5,500; Ed Ballantyne, $1,750. 31. Based on an analysis of the $815,240 of accounts receivable, it was estimated that $16,750 will be uncollectible. Journalized the adjusting entry.