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 $1,775 cash in full payment of Arlenes account.
Apr. 3.	Wrote off the $10,170 balance owed by Premier GS Co., which is bankrupt.
July 16.	Received 45% of the $18,200 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 $2,895 cash in full payment.
Dec. 31.	Wrote off the following accounts as uncollectible (compound entry): Cavey Co., $7,650 ; Fogle Co., $2,270 ; Lake Furniture, $ 5,840 ; Melinda Shryer, $1,650.
Dec. 31.	Based on an analysis of the $901,600 of accounts receivable, it was estimated that $39,200 will be uncollectible. Journalize the adjusting entry.

Required:

1. Record the January 1 credit balance of $37,300 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 $901,600 balance in accounts receivable reflects the adjustments made during the year.

Jan. 19-reinstate		fill in the blank e51caf03dff5f87_2
			fill in the blank e51caf03dff5f87_4
Jan. 19-collection		fill in the blank e51caf03dff5f87_6
			fill in the blank e51caf03dff5f87_8
Apr. 3		fill in the blank e51caf03dff5f87_10
			fill in the blank e51caf03dff5f87_12
July 16		fill in the blank e51caf03dff5f87_14	fill in the blank e51caf03dff5f87_15
		fill in the blank e51caf03dff5f87_17	fill in the blank e51caf03dff5f87_18
		fill in the blank e51caf03dff5f87_20	fill in the blank e51caf03dff5f87_21
Nov. 23-reinstate		fill in the blank e51caf03dff5f87_23
			fill in the blank e51caf03dff5f87_25
Nov. 23-collection		fill in the blank e51caf03dff5f87_27
			fill in the blank e51caf03dff5f87_29
Dec. 31-write-off		fill in the blank e51caf03dff5f87_31	fill in the blank e51caf03dff5f87_32
		fill in the blank e51caf03dff5f87_34	fill in the blank e51caf03dff5f87_35
		fill in the blank e51caf03dff5f87_37	fill in the blank e51caf03dff5f87_38
		fill in the blank e51caf03dff5f87_40	fill in the blank e51caf03dff5f87_41
		fill in the blank e51caf03dff5f87_43	fill in the blank e51caf03dff5f87_44
Dec. 31-adjusting		fill in the blank e51caf03dff5f87_46
			fill in the blank e51caf03dff5f87_48

2. b. Post each entry that affects the following T accounts and determine the new balances:

Allowance for Doubtful Accounts
	fill in the blank 9f747403903dfa7_2	Jan. 1 Balance	fill in the blank 9f747403903dfa7_3
	fill in the blank 9f747403903dfa7_5		fill in the blank 9f747403903dfa7_7
	fill in the blank 9f747403903dfa7_9		fill in the blank 9f747403903dfa7_11
			fill in the blank 9f747403903dfa7_13
			fill in the blank 9f747403903dfa7_15
		Dec. 31 Adjusted Balance	fill in the blank 9f747403903dfa7_16

Bad Debt Expense
	fill in the blank 9f747403903dfa7_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 4916a8f5df96072_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 $5,570,000 for the year, determine the following:

a. Bad debt expense for the year. $fill in the blank 4916a8f5df96072_2

b. Balance in the allowance account after the adjustment of December 31. $fill in the blank 4916a8f5df96072_3

c. 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 4916a8f5df96072_4