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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
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. Journalize the receipt of $2,540 cash in full payment of Arlenes account. |
Apr. 3. | Wrote off the $14,550 balance owed by Premier GS Co., which is bankrupt. |
July 16. | Received 25% of the $26,100 balance owed by Hayden Co., a bankrupt business, and wrote off 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 $4,140 cash in full payment. |
Dec. 31. | Wrote off the following accounts as uncollectible (compound entry): Cavey Co., $10,945 ; Fogle Co., $3,250 ; Lake Furniture, $ 8,355 ; Melinda Shryer, $2,360. |
Dec. 31. | Based on an analysis of the $1,288,000 of accounts receivable, it was estimated that $56,000 will be uncollectible. Journalize the adjusting entry. |
Required:
1. Record the January 1 credit balance of $53,300 in a T account presented below in requirement 2b for Allowance for Doubtful Accounts.
2. a. Journalize the transactions. If an amount box does not require an entry, leave it blank. Note: For the December 31 adjusting entry, assume the $1,288,000 balance in accounts receivable reflects the adjustments made during the year.
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