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 uncollectie Boumaire the receipt of $2,300 cash payment of Anne's account Apr 3. Wrote off the $13,150 balance owed by Premier So, which is bankrupt. July 16. Received 30% of the $23,600 balance owed by Hayden Cobanrupt business, and wrote of the remainder as uncollectie Nov. 23. Reinstated the account of Harry Cart which had been written off two years earlier as uncollectible Recorded the receipt of $3,750 cash in payment Dec Wrote off the following accounts as uncollectible (compound entry) Crvey Co, 99,915 : Fogle co. 12,965; Lake Furniture, 37,365: Melinda Shiryer, 2.10. 31. Dec Based on an analysis of the $1,166,100 of accounts receivable, it was imated that 550,700 will be uncollectible Journalize the adjusting entry 31 Required: 1. Record the January 1 credit balance of $48,300 in aT account presented below in requirement 2b for Allow for Doubthul Account 2. a. Journalue the transactions. It an amount box does not require an entry, leave it blank. Noted for the December 31 adjusting entry, assume the 1.166,100 e accounts reflect adjustments made during the yea Jan. 19-reinstate Accounts Receivable-Arlene Gurley 2,300 Allowance for Doubtful Accounts 2,300 2,300 Jan. 19-collection Cash Accounts Receivable-Arlene Gurley 2,300 Apr. 3 Allowance for Doubtful Accounts 13,180 Accounts Receivable-Premier GS Co. 13,180 July 16 Cash 7,080 Allowance for Doubtful Accounts 16,520 Accounts Receivable-Hayden Co. 23,600 Nov. 23-reinstate Accounts Receivable-Harry Carr 3,750 Allowance for Doubtful Accounts 3,750 Nov. 23-collection Cash 3,750 v. 23-collection Cash 3,750 Accounts Receivable-Harry Carr 3,750 ec. 31-write-off Allowance for Doubtful Accounts 22,565 Accounts Receivable-Cavey Co. 9,915 Accounts Receivable-Fogle Co. 2,945 Accounts Receivable-Lake Furniture 7,565 Accounts Receivable-Melinda Shryer v 2,140 ec. 31-adjusting Bad Debt Expense 2,085 X Allowance for Doubtful Accounts 2,085 X 2. b. Post each entry that affects the following T accounts and determine the new balances: Allowance for Doubtful Accounts Apr. 3 Jan. 1 Balance July 16 Jan. 19 Dec. 31 Nov. 23 Dec. 31 Unadjusted Balance Dec. 31 Adjusting Entry Dec. 31 Adjusted Balance Bad Debt Expense Dec. 31 Adjusting Entry 3. Determine the expected niet reaktabie value of the scenunts receivable as of December 11 (after all of the adjustments and the adjusting entry), 4. Assuming that instead of being the provision for uncollectible accounts on an analysis of receivables, the adjusting entry on December 31 has been based on an estimated expense of of t% of the sales of 7,200,000 for the year determine the following: a Badebt expens for the year b. Balance in the allowance account after the adjustment of December 31 Expected net realizable value of the counts receivable as of December 31 (after all of the adjustments and the adjusting entry)
