Question
Allowance method entries The following transactions were completed by Wild Trout Gallery during the current fiscal year ended December 31: Date Transaction January 19. Reinstated
Allowance method entries
The following transactions were completed by Wild Trout Gallery during the current fiscal year ended December 31:
Date | Transaction |
---|---|
January 19. | Reinstated the account of Arlene Gurley, which had been written off in the preceding year as uncollectible. Journalized the receipt of $1,730 cash in full payment of Arlenes account. |
April 3. | Wrote off the $9,910 balance owed by Premier GS Co., which is bankrupt. |
July 16. | Received 30% of the $17,800 balance owed by Hayden Co., a bankrupt business, and wrote off the remainder as uncollectible. |
November 23. | Reinstated the account of Harry Carr, which had been written off two years earlier as uncollectible. Recorded the receipt of $2,820 cash in full payment. |
December 31. | Wrote off the following accounts as uncollectible (compound entry): Cavey Co., $7,455; Fogle Co., $2,215; Lake Furniture, $5,690; Melinda Shryer, $1,610. |
December 31. | Based on an analysis of the $876,300 of accounts receivable, it was estimated that $38,100 will be uncollectible. Journalized the adjusting entry. |
1. Record the January 1 credit balance of $36,300 in a T account presented below in requirement 2b for Allowance for
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 $876,300 balance in accounts receivable reflects the adjustments made during the year.
2. b. Post each entry that affects the following T accounts and determine the new balances:
Transaction | Debit amount | Transaction | Credit amount |
---|---|---|---|
fill in the blank 1 of 18 Jan. 19Apr. 3Nov. 23 | fill in the blank 2 of 18 | Jan. 1 Balance | fill in the blank 3 of 18 |
fill in the blank 4 of 18 Jan. 19July 16Nov. 23 | fill in the blank 5 of 18 | fill in the blank 6 of 18 Jan. 19July 16Dec. 31 | fill in the blank 7 of 18 |
fill in the blank 8 of 18 Jan. 19Nov. 29Dec. 31 | fill in the blank 9 of 18 | fill in the blank 10 of 18 Apr. 3July 16Nov. 23 | fill in the blank 11 of 18 |
fill in the blank 12 of 18 July 16Nov. 23Dec. 31 Unadjusted Balance | fill in the blank 13 of 18 | ||
fill in the blank 14 of 18 Apr. 3July 16Dec. 31 Adjusting Entry | fill in the blank 15 of 18 | ||
Dec. 31 Adjusted Balance | fill in the blank 16 of 18 |
Transaction | Debit amount | Transaction | Credit amount |
---|---|---|---|
fill in the blank 17 of 18 Dec. 31 Adjusting EntryDec. 31 Unadjusted Balance | fill in the blank 18 of 18 |
3. Determine the expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry). fill in the blank 1 of 1$
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 of 1% of the sales of $5,410,000 for the year, determine the following:
a. Bad debt expense for the year. fill in the blank 1 of 1$
b. Balance in the allowance account after the adjustment of December 31. fill in the blank 1 of 1$
c. Expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry).
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