9.7
Entries Related to Uncollectible Accounts The following transactions were completed by The Wild Trout Gallery during the current fiscal year ended December 313 Jan. 19 Reinstated the account of Artene 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. Apr 3 Wrote of the 515,790 balance owed by Premier GS Co., which is bankrupt Duty 16 Received 45% of the 528 300 balance owed by Hayden co, a bankrupt business, and wrote all 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 rull payment Dec 31 wrote of the following accounts as uncollectible (one entry). Covey Co 311,025 Pogle Co, 53,528, 59,065: Melna Shryer, $2,560 31 Based on an analysis of the $1.398.400 ct accounts receivable. I was estimated that $60,000 will be uncoectiste. Joumalized the adjusting entry Required: 1. Record the January 1 credit balance of $57.900 in aT account presented below in requirement for Allowance for Doubtful Account 2. a. ournalte the transactions. If art out box does not require an entry, leave it blank. Notes for the December 31 adjusting entry, assume the 51,398.400 Dacia accounts receivable reflects the adjustments made during the year Jan. 15-restate Accounts Receivable Arlene Gurley LV Allowance for Doubtful Accounts Ch Jan. 19-collection Cash 2,755 Accounts Receivable-Arlene Gurley 2,755 Apr. 3 Allowance for Doubtful Accounts 15,790 Accounts Receivable-Premier GS Co. 15,790 July 16 Cash 12,735 Allowance for Doubtful Accounts 15,565 Accounts Receivable-Hayden Co. 28,300 4,490 Nov. 23-reinstate Accounts Receivable-Harry Carr Allowance for Doubtful Accounts 4,490 Cash 4,490 Nov. 23-collection 4,490 Accounts Receivable-Harry Carr 27,025 Dec. 31-write-off Allowance for Doubtful Accounts 11,875 Accounts Receivable-Cavey Co. 3,525 Accounts Receivable-Fogle Co. le remaining Dec. 31-adjusting Bad Debt Expense 54,035 Allowance for Doubtful Accounts 54,035 Feedback Check My Work 2. b. Post each entry that affects the following T accounts and determine the new balances: Allowance for Doubtful Accounts Jan. 1 Balance Apr. 3 July 16 Dec. 31 Dec. 31 Adjusted Balance Bad Debt Expense MW 3. Determine the expected netre value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry) 1,344,365 x 4. Assuming that instead of basing the provision for un collectible accounts on an analysis of relates the adjusting entry on December had been based on and expense of of 1% of the sales of 5.630,000 for the year, determine the following bad debt pense for the year 43,150 1. Balance in the allowance account after the adjustment of December 31 49,915 hermal and and the Of the
