Allowance Method Entries
The following transactions were completed by Wild Trout Gallery dueing the current fiscal year ended December 31:
eBook Show Me How Calculator Allowance method entries Jan. 19. The following transactions were completed by Wild Trout Gallery during the current fiscal year ended December 31: Reinstated the account of Arlene Gurley, which had been written off in the preceding year as uncollectible. Journalize the receipt of $2,135 cash in full payment of Arler account. Apr. 3. Wrote off the $12,230 balance owed by Premier GS Co., which is bankrupt. July 16. Received 45% of the $21,900 balance owed by Hayden Co., a bankrupt business, and wrote off the remainder as uncollectibla. Nov. 23. Reinstated the account of Harry Carr, which had been written off two years earlier as uncollectible. Recorded the receipt of $3,480 cash in full payment. Dec. 31. Wrote off the following accounts as uncollectible (compound entry): Cavey Co., $9,200 ; Fogle Co., $2,735 ; Lake Furniture, $ 7,025; Melinda Shryer, $1,985. Dec. Based on an analysis of the $1,081,000 of accounts receivable, it was estimated that $47,000 will be uncollectible. Journalize the adjusting entry. 31. Required: 1. Record the January 1 credit balance of 544,800 in a T account presented below in require t2b for Allowance for Doubtful Accounts. 2. a. Journalize the transactions. IT an amount box does not require an entry, leave it blank. Note: Fof the December 31 adjusting entry, assume the $1,081,000 balance in accounts receivable reflects the adjustments made during the year, Jan. 19-reinstate Jan. 19-collection Apr. 3 July 16 Check My Work 5 more Check My Work uses remaining. Save and Exit Submit Assignment for Grading MacRook Pro eBook Show Me How Apr. 3 July 16 Nov. 23-reinstate Nov. 23-collection On HII I II I I 011111 Dec. write-off Dec. 31-adjusting 2. b. Post each entry that affects the following accounts and determine the new balances: Allowance for Doubtful Accounts Jan. 1 Balance Check My Work 5 more Check My Work uses remaining Save and Exit Submit Assignment for Grading eBook Show Me How Calculator 2. b. Post each entry that affects the following T accounts and determine the new balances: Allowance for Doubtful Accounts Jan. 1 Balance Dec. 31 Adjusted Balance Bad Debt Expense 3. Determine the expected net reliable 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 1 of 1 of the sales of $6,670,000 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 reliable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry). Check My Work 5 more Check My Work uses remaining. remaining Save and Exit Submit Assignment for Grading MacBook Pro
