Allowance method entries The following transactions were completed by Wild Trout Gallery during the current fiscal year ended December 31: January 19. April 3. July 16. November 23. December 31. 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 $1,995 cash in full payment of Arlene's account. Wrote off the $11,430 balance owed by Premier GS Co., which is bankrupt. Received 25% of the $20,500 balance owed by Hayden Co., a bankrupt business, and wrote off the remainder as uncollectible. Reinstated the account of Harry Carr, which had been written off two years earlier as uncollectible. Recorded the receipt of $3,250 cash in full payment. Required: 1. Record the January 1 credit balance of $41,900 in a T account presented below in requirement 2b for Allowance for Doubtful Accounts. Jan. 19 Wrote off the following accounts as uncollectible (compound entry): Cavey Co., $8,600; Fogle Co., $2,555; Lake Furniture, $6,565; Melinda Shryer, $1,855. 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 $1,012,000 balance in accounts receivable reflects the adjustments made during the year. Apr 2 Based on an analysis of the $1,012,000 of accounts receivable, it was estimated that $44,000 will be uncollectible. Journalized the adjusting entry. 1,995 1,995

and determine the new balances: 2. b. Post each entry that affects the following T accounts and determine the new balances: 3. Determine the expected net fealizable value of the accounts recelvable as of December 31 (after all of the adfustments and the adjusting entry). 5 4. Assuming that instead of basing the provision for uncollectble accounts on an analvsis of recelvables, the adjusting entry on December 31 had been based on an estimated expense of th of 196 of the sales of $6,250,000 for the vear, determine the foliowingt: a. Bad debt expense for the year. 1 b. Balance in the allowance account after the adjustment of December 31. 1 C. Expected net realizable value of the accounts recelvable as of December 31 (after al of the adjustmenta and the adjusting entry). Allowance method entries The following transactions were completed by Wild Trout Gallery doring the current fiscal year ended December 31 : January 19. Reinstated the account of Arlene Gurley, which had been written olf in the preceding year as uncallectible. Journalized the receipt of $1,995 cash in full payment of Arlene's account. Apell 3. Wrote off the $11,430 balance owed by Premier GS C0, whilch is bankrupt. July 16. Received 25% of the $20,500 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 uncolictible. Recorded the receipt of $3,250 cash in full payment. December 31. Wrote off the following accounts as uncoliectible (compound entry); Caver Co., s0,600; Fogle Co \& 52,555 ; Lake Furniture, $6,565; Melindo Shryer, $1,055. December 31. Based on an analysis of the $1,012,000 of accounts recelvable, it was estimoted that $44,000 wilt be uncollectble. Journalized the adjusting entry