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 $$1,875$ cash in full payment of Arlene$$s account.

Apr. $3.$ Wrote off the $$10,740$ balance owed by Premier GS Co$.,$ which is bankrupt.

July $16.$ Received $30\%$ of the $$19,300$ 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 $$3,055$ cash in full payment.

Dec. $31.$ Wrote off the following accounts as uncollectible $($compound entry$)$: Cavey Co$.,$ $$8,080$ ; Fogle Co$.,$ $$2,400$ ; Lake Furniture, $ $6,170$ ; Melinda Shryer, $$1,745.$

Dec. $31.$ Based on an analysis of the $$952,200$ of accounts receivable, it was estimated that $$41,400$ will be uncollectible. Journalize the adjusting entry.

Required:

$1.$ Record the January $1$ credit balance of $$39,400$ in a T account presented below in requirement $2$b for Allowance for Doubtful Accounts.

Question Content Area

$2.$ 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 $$952,200$ balance in accounts receivable reflects the adjustments made during the year.

Jan. $19-$reinstate

Accounts Receivable$-$Arlene Gurley

Accounts Receivable$-$Arlene Gurley

$1,875$

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts

$1,875$

Jan. $19-$collection

Cash

Cash

$1,875$

Accounts Receivable$-$Arlene Gurley

Accounts Receivable$-$Arlene Gurley

$1,875$

Apr. $3$

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts

$10,740$

Accounts Receivable$-$Premier GS Co$.$

Accounts Receivable$-$Premier GS Co$.$

$10,740$

July $16$

Cash

Cash

$5,790$

Cash

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts

$13,510$

Allowance for Doubtful Accounts

Accounts Receivable$-$Hayden Co$.$

Accounts Receivable$-$Hayden Co$.$

Accounts Receivable$-$Hayden Co$.$

$19,300$

Nov. $23-$reinstate

Accounts Receivable$-$Harry Carr

Accounts Receivable$-$Harry Carr

$3,055$

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts

$3,055$

Nov. $23-$collection

Cash

Cash

$3,055$

Accounts Receivable$-$Harry Carr

Accounts Receivable$-$Harry Carr

$3,055$

Dec. $31-$write$-$off

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts

$18,395$

Allowance for Doubtful Accounts

Accounts Receivable$-$Cavey Co$.$

Accounts Receivable$-$Cavey Co$.$

Accounts Receivable$-$Cavey Co$.$

$8,080$

Accounts Receivable$-$Fogle Co$.$

Accounts Receivable$-$Fogle Co$.$

Accounts Receivable$-$Fogle Co$.$

$2,400$

Accounts Receivable$-$Lake Furniture

Accounts Receivable$-$Lake Furniture

Accounts Receivable$-$Lake Furniture

$6,170$

Accounts Receivable$-$Melinda Shryer

Accounts Receivable$-$Melinda Shryer

Accounts Receivable$-$Melinda Shryer

$1,745$

Dec. $31-$adjusting

Bad Debt Expense

Bad Debt Expense

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts

Question Content Area

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

Allowance for Doubtful Accounts

Apr. $3$

fill in the blank $5617$af$0$a$405202$d$\_2$

$10,740$

Jan. $1$ Balance fill in the blank $5617$af$0$a$405202$d$\_3$

$39,400$

July $16$

fill in the blank $5617$af$0$a$405202$d$\_5$

$13,510$

Jan. $19$

fill in the blank $5617$af$0$a$405202$d$\_7$

$1,875$

Dec. $31$

fill in the blank $5617$af$0$a$405202$d$\_9$

$18,395$

Nov. $23$

fill in the blank $5617$af$0$a$405202$d$\_11$

$3,055$

Dec. $31$ Unadjusted Balance

fill in the blank $5617$af$0$a$405202$d$\_13$

Dec. $31$ Adjusting Entry

fill in the blank $5617$af$0$a$405202$d$\_15$

Dec. $31$ Adjusted Balance fill in the blank $5617$af$0$a$405202$d$\_16$

$41,400$

Bad Debt Expense

Dec. $31$ Adjusting Entry

fill in the blank $5617$af$0$a$405202$d$\_18$

Question Content Area

$3.$ 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 a$784$f$2057$fdbfe$6\_1$

$910,800$

$4.$ 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 $(1)/(2)$ of $1\%$ of the sales of $$5,880,000$ for the year, determine the following:

a$.$ Bad debt expense for the year.

$fill in the blank a$784$f$2057$fdbfe$6\_2$

$29,400$

b$.$ Balance in the allowance account after the adjustment of December $31.$

$fill in the blank a$784$f$2057$fdbfe$6\_3$

c$.$ Expected net realizable value of the accounts receivable as of December $31($after all of the adjustments and the adjusting entry$).$