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. Journalized the receipt of $1,850 cash in full payment o account. Apr. 3. Wrote off the $10,600 balance owed by Premier GS Co., which bankrupt. July 16. Received 45% of the $19,000 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 $3,015 cash in full payment. Dec. 31. Wrote off the following accounts as uncollectible (compound entry): Cavey Co., $7,975; Fogle Co., $2,370; Lake Furniture, $ 6,085; Melinda Shryer, $1,720. Dec. 31. Based on an analysis of the $938,400 of accounts receivable, it was estimated that $40,800 will be uncollectible. Journalized the adjusting entry. Required: 1. Record the January 1 credit balance of $38,900 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 $938,400 balance in accounts receivable reflects the adjustments made during the year. Jan. 19 Accounts Receivable-Arlene Gurley 1,850 1,850 Allowance for Doubtful Accounts Jan, 19 Cash 1,850 Accounts Receivable-Arlene Gurley 1,850 Apr. 31 Allowance for Doubtful Accounts 10,600 Accounts Receivable-Premier GS Co. 10,600 July 16 Cash 8,550 July 16 Cash Allowance for Doubtful Accounts Accounts Receivable-Hayden Co. 8,550 19,000 Nov. 23 Accounts Receivable-Harry Carr 3,015 Allowance for Doubtful Accounts 3,015 Nov. 23 Cash 3,015 Accounts Receivable-Harry Carr 3,015 Dec. 31 Allowance for Doubtful Accounts 18,150 Accounts Receivable-Cavey Co. 7.975 Accounts Receivable-Fogle Co. 2,370 Accounts Receivable-Lake Furniture Accounts Receivable-Melinda Shryer Dec. 31 Bad Debt Expense Allowance for Doubtful Accounts 6,085 V 1,720. x x 2. b. Post each entry that affects the following T accounts and determine the new balances: Allowance for Doubtful Accounts 10,600 Jan. 1 Balance Apr. 3 July 16 X Jan. 19 Dec. 31 18.150 Nov. 23 38,900 1,850 3015 7 Allowance for Doubtful Accounts Apr. 3 10,600 Jan. 1 Balance 38,900 July 16 X Jan. 19 1,850 Dec. 31 18,150 Nov. 23 3,015 Dec. 31 Unadjusted Balance x Dec. 31 Adjusting Entry Dec. 31 Adjusted Balance Bad Debt Expense Dec. 31 Adjusting Entry x 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 Vi of 1% of the sales of $5,790,000 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. x c. Expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry). x