account Allowance method entries The following transactions were completed by 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. Journalred the receipt of $2,215 cath in full payment of diene's Apr.). Wrote of the $12.090 balance owed by Premier GS Co, which is bankrupt. July 16. Received 35% of the $22,100 balance owed by Hayden Co, a bankrupt business, and wrote of the remainder as collectible Nov. 23. Reinstated the account of Harry Carr, which had been written off two years earlier as uncollectible. Hecorded the receipt of $3,010 cash te fal payment. Dec. 31. Wrote of the following accounts as uncollectible (compound enti) Cavey Co, 10.945: Pogle Co. 62,035: Lakehur, 87,20 : Melinda shevet, 17,000, Dec. 31. Based on an analysis of the 81,122,400 of accounts receivable. It was estimated that 8.000 will be incodech Journalsed the adjusting entry Required 1. Record the January 1 credit balance of 546,500 in an account presented below in requirement 2 for Micance for Content Account 2... Joumalize the transactions. It an amount box does not require an entry, leave it bank, ote for the December 31 austing untry, some the 51,122.400 dance in acco receivable reflects the adjustments made during the year Jan. 19 Accounts Receivable Artene Gurley Allowance for Doubtful Accounts 275 Jan, 10 Cash Accounts Receivable Arlene Gurley 3315 Apr. 3 Allowance for Doubtful Accounts 12,690 Accounts Receivable Premier GS CO. 12,690 July 16 Cash 7.980 Allowance for Doubtful Accounts Accounts Receivable Hayden Co. 14,820 22,800 Nov. 23 Accounts Receivable Harry Carr Allowance for Doubtful Accounts 3,610 3,610 3.610 Nov. 23 Cash Accounts Receivable Harry Carr 3,610 Dec. 31 Allowance for Doubtful Accounts 21.725 Accounts Receivable-Cavey Co. 9,545 2,835 Accounts Receivable-Fogle Co, Accounts Receivable-Lake Furniture 7.285 Accounts Receivable-Melinda Shryer 2.060 Dec. 31 Bad Debt Expense Il Allowance for Doubtful Accounts 2. b. Post each entry that affects the following accounts and determine the new balances Allowance for Doubtful Accounts Apr 12,690an. 1 Balance July 16 14,820 lan 19 Dec 31 . 21,725 Nov Dec 31 Unadjusted Balance Adjusting Entry pec. Adjusted tatanice Bad Debt Expense Dec 31 Adjusting Entry Feed 3. Determine the expected net realable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry) 1,073,600 v 4. Assuming that instead of basing the provision for uncollectible accounts on an analysis of receivables, the adjusting entry on December had been done of of 1% of the sales of $6,930,000 for the year, determine the following a. Bad debt expense for the Year b. Balance in the allowance account after the adjustment of December $1 Expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry)
