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 $1,745 cash in full payment of Arlene's account. Apr. 3. Wrote off the $10,000 balance owed by Premier GS Co., which is bankrupt. July 16. Received 30% of the $17,900 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 $2,845 cash in full payment. , . Dec. Wrote off the following accounts as uncollectible (compound entry): Cavey Co., $7,520 ; Fogle Co., $2,235; Lake Furniture, $ 5,740 ; Melinda Shryer, $1,625. 31. Dec. 31. Based on an analysis of the $883,200 of accounts receivable, it was estimated that $38,400 will be uncollectible. Journalize the adjusting entry. Required: 1. Record the January 1 credit balance of $36,600 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 $883,200 balance in accounts receivable reflects the adjustments made during the year. Jan. 19-reinstate Accounts Receivable-Arlene Gurley Allowance for Doubtful Accounts Jan. 19-collection Cash Accounts Receivable-Arlene Gurley - Apr. 3 Allowance for Doubtful Accounts Accounts Receivable-Premier GS Co. July 16 Cash Allowance for Doubtful Accounts Accounts Receivable-Hayden Co. 1 1 1 1 1 1 1011 1111 Nov. 23-reinstate Accounts Receivable-Harry Carr Allowance for Doubtful Accounts Nov. 23-collection Cash Accounts Receivable-Harry Carr Dec. 31-write-off Allowance for Doubtful Accounts Accounts Receivable-Cavey Co. Accounts Receivable-Fogle Co. Accounts Receivable-Lake Furniture Accounts Receivable-Melinda Shryer Dec. 31-adjusting Bad Debt Expense Allowance for Doubtful Accounts Feedback 2. b. Post each entry that affects the following T accounts and determine the new balances: Allowance for Doubtful Accounts Jan. 1 Balance Apr. 3 July 16 Dec. 31 Jan. 19 Nov. 23 - Dec. 31 Unadjusted Balance Dec. 31 Adjusting Entry Dec. 31 Adjusted Balance Bad Debt Expense Dec. 31 Adjusting Entry Feedback 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 12 of 1% of the sales of $5,450,000 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 realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry). Feedback Feedback Check My Work Partially correct