9.7
Entries Related to Uncollectible Accounts Ape The following transactions were completed by The Wild Trout Gallery during the current fiscal year ended December 31 Jan. 19 Reinstated the account of Arlene Gurley, which had been written off in the preceding year as uncollectible. Journalized the receipt of $2,755 cash in full payment of Arlene's account 3 Wrote of the $15,790 balance owed by Premier GS Co, which is bankrupt. July 16 Received 45% of the $28, 300 balance owed by Hayden Co., a bankrupt business, and wrote of the remainder as uncollectible. Nov. 23 Reinstated the account of Harry Carr, which had been written off two years earlier as uncollectible. Recorded the receipt of $4,490 cash in full payment Dec. 31 Wrote off the following accounts as uncollectible (one entry): Cavey Co., $11,875; Fogle Co., 53,525; Lake Furniture, $9,065; Melinda Shryer, $2,560. 31 Based on an analysis of the $1,398,400 of accounts receivable, it was estimated that $60,800 will be uncollectible, Journalized the adjusting entry. Requiredt 1. Record th January 1 credit balance of $57,900 in a T account presented below in requirement 2b for Alowance for Doubtful Accounts. 2. 3. Journaize the transactions. If an amount box does not require an entry, leave it blank. Note: For the December 31 adjusting entry, asume the $1,398,400 balance in accounts receivable reflects the adjustments made during the year. Jan. 19-reinstate Accounts Receivable-Arlene Gurley Allowance for Doubtful Accounts 1.755 Jan. 19-collection Cash Jan. 19-collection Cash Accounts Receivable-Arlene Gurley Apr. 3 Allowance for Doubtful Accounts Accounts Receivable-Premier GS Co. July 16 Cash Allowance for Doubtful Accounts Accounts Receivable-Hayden Co. Nov. 23-reinstate Cash Accounts Receivable-Harry Carr III II II III. II II III II II III. Nov. 23-cobection Cash Accounts Receivable-Harry Carr Dec. 31-write-off Allowance for Doubtful Accounts Accounts Receivable-Cavey Co. Accounts Receivable-Fogle Co. Accounts Receivable-Lake Furniture Previous UITGLIVING Dec. 31-adjusting Bad Debt Expense Allowance for Doubtful Accounts 88 2. b. Post each entry that affects the following accounts and determine the new balances Allowance for Doubtful Accounts Apr. 3 Jan, 1 Balance July 16 Dec. 31 Dec 31 Adjusted Balance Bad Debt Expense 3. Determine the expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry) 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 Dec. 31 Dec. 31 Adjusted Balance Bad Debt Expense 3. Determine the expected net valuable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry) 4. Assuming that instead of basing the provision for uncollectible accounts on an analysis of reciwnies, the adjusting entry on December 31 had been based on an estimated expense of of 1% of the sales of $5,630,000 for the year, determine the following Bed debt expense for the year. b. Balance in the allowance account after the adjustment of December 31. Expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry)
