Allowance method entries The following transactions were completed by Wild Trout Gallery during 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 $1,625 cash in full payment of Arlene's account. Apr. 3. Wrote off the $9,310 balance owed by Premier GS Co., which is bankrupt. July 16. Received 25% of the $16,700 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 $2,650 cash in full payment. Dec. 31. Wrote off the following accounts as uncollectible (compound entry): Cavey Co., $7,005 ; Fogle Co., $2,080 ; Lake Furniture, $ 5,345; Melinda Shryer, $1,510. Dec. 31. Based on an analysis of the $823,400 of accounts receivable, it was estimated that $35,800 will be uncollectible. Journalized the adjusting entry. Required: 1. Record the January 1 credit balance of $34,100 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 $823,400 balance in accounts receivable reflects the adjustments made during the year. Jan. 19 Accounts Receivable-Arlene Gurley Allowance for Doubtful Accounts I II II Bad Debt Expense Dividends Interest Receivable Sales Jan. 19 Ja Accounts Payable-Arlene Gurley Allowance for Doubtful Accounts I l III Bad Debt Expense Dividends Interest Receivable Ju Sales Jan. 19 Jan. 19 Accounts Payable-Arlene Gurley II OM II II II 12 Advertising Expense Bad Debt Expense Cash Ju Interest Receivable Sales Jan. 19 Jan. 19 II Accounts Receivable-Arlene Gurley Advertising Expense Bad Debt Expense I II II III Cash Interest Receivable Sales Apr. 3 Accounts Receivable-Premier GS Co. Allowance for Doubtful Accounts Bad Debt Expense Cash Notes Receivable Sales II III II Apr. 3 11 Accounts Receivable-Premier GS Co. Allowance for Doubtful Accounts II II II Bad Debt Expense Cash Notes Receivable Sales July 16 Accounts Payable-Hayden Co. Accounts Receivable-Hayden Co. NO Bad Debt Expense Cash HII III Notes Receivable NO Sales July 16 Accounts Receivable-Hayden Co. No Allowance for Doubtful Accounts Bad Debt Expense Interest Receivable Notes Receivable HII II II NO Sales July 16 No Accounts Receivable-Hayden Co. Allowance for Doubtful Accounts Bad Debt Expense III HII II III NO Cash Notes Receivable DE Sales Nov. 23 Accounts Receivable-Harry Carr Nd Allowance for Doubtful Accounts Bad Debt Expense Dividends I ll lll De Interest Receivable Sales Nov. 23 U IR Nov. 23 Accounts Payable-Harry Carr Dec Advertising Expense Bad Debt Expense Cash Interest Receivable Sales Nov. 23 De Accounts Receivable-Harry Carr Advertising Expense Bad Debt Expense II IIIII Cash Interest Receivable Sales De Dec. 31 Allowance for Doubtful Accounts Bad Debt Expense Cash HII II Interest Expense DE Notes Receivable Sales Dec. 31 Accounts Payable-Cavey Co. Accounts Receivable-Cavey Co. Allowance for Doubtful Accounts Bad Debt Expense Interest Revenue Notes Receivable Following T accounts and QUI II De Dec. 31 Accounts Payable-Fogle Co. Accounts Receivable-Fogle Co. De Allowance for Doubtful Accounts Bad Debt Expense II 11111 Cash 2.1 jollowing T accounts ar Sales for Doubtful Account Dec. 31 llll HII NI Accounts Payable-Lake Furniture Accounts Receivable-Lake Furniture Allowance for Doubtful Accounts Bad Debt Expense 2. Cash lowing T accounts and br Doubtful Accounts Sales Dalas Dec. 31 lllll Accounts Payable-Melinda Shryer Accounts Receivable-Melinda Shryer Allowance for Doubtful Accounts Bad Debt Expense owing T accounts and dete r Doubtful Accounts Cash Sales Jan. 1 Balance 2 Dec. 31 IIIII IT HII II Dec. 31 2. Accounts Payable Accounts Receivable ollowing T accounts and Allowance for Doubtful Accounts for Doubtful Accounts Bad Debt Expense Jan. 1 Balance 1 Cash Income Summary Dec. 31 IIII II Dec. 31 Accounts Payable 2.1 ollowing T accou Accounts Receivable for Doubtful Ac Allowance for Doubtful Accounts Jan. 1 Bal 1 Bad Debt Expense Cash Income Summary 2. b. Post each entry that affects the following T accounts and determine the new balances: Allowance for Doubtful Accounts Jan. 1 Balance Jan. 19 Apr. 3 Nov. 23 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 expense of 12 of 1% of the sales of $5,080,000 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 (after all of the adjustments and the adjusting entry)