Allowance methods The following transactions were completed by Wild Trout Gallery during the current fiscal year ended December 31 Reinstated the account of Arlene Curley, which had been written off in the preceding year as oncollectible journalize the receipt of $2.305 cash in payment of Arlene's Jan. 19. account Apr. 3. Wrote off the $13.210 balance owed by Premier GS Co, which is bankrupt. July 16. Received 35% of the $23,700 balance owed by Hayden Co., a bankrupt business, and wrote of the remainder as uncollectible Nov. 23. Reinstated the account of Harry Care, which had been written off two years earlier as uncollectible. Recorded the receipt of $3.755 cash in full payment Dec 31 Wrote of the following accounts as uncollectible (compound entry): Cavey Co. $9.935 : Fogle Co., $2.950 : Lake Furniture, $ 7,585 : Melinda Shrver $2,145 Dec Based on an analysis of the 51.168.400 of accounts receivable, it was estimated that $50,000 will be uncollectible, Journalce the adjusting entry 31 Required: 1. Record the January 1 credit balance of 548,400 in aT account presented below in requirement 2 for Allowance for Doubtful Accounts 2. a. Journalize the transactions, an amount box does not require an entry, leave it blank. Note: For the December 11 adjusting entry, assume the $1,168,400 balance in accounts receivable reflects the adjustments made during the year Jan 19. reinstate Accounts Receivable Arlene Gurley Allowance for Doubtful Accounts 2.305 2.305 2.305 Jan 19 collection Cash Accounts Receivable Attene Gurley Apr Allowance for Doubtful Accounts Accounts Receivable-Premier CS Co. 111 July 10 Cash 23,700 Allowance for Doubtful Accounts Accounts Receivable-Hayden Co. Nov. 23-reinstate Accounts Receivable-Harry Carr Allowance for Doubtful Accounts 2.755 755 Nov 23-collection Cash Accounts Receivable-Harry Care 1 lllll ] 1 1 1,755 3.755 Dec. 31-ne-off Allowance for Doubtful Accounts Accounts Receivable-Cavey Co. Accounts Receivable-Fogle Co. Accounts Receivable-Lake Furniture Accounts Receivable-Melinda Shyer Dec 31-adjusting Bad Debt Expense Allowance for Doubtful Accounts Accounts Recnivable-Hayden Co. 23,700 1,755 Nov. 23-reinstate Accounts Receivable-Harry Carr Allowance for Doubtful Accounts 3.255 3,755 3.755 Nov. 23.collection Cash Accounts Receivable-Harry Care Dec. 31 write-of Allowance for Doubtful Account Accounts Receivable-Cavey Co. Accounts Receivable-Fogle Co. Accounts Receivable Lake Furniture Accounts Receivable-Melinda Shryer 1 lllll I Illlll . . Dec 31-adjusting Bad Debt Expense Allowance for Doubtful Accounts 2. b. Post each entry that affects the following accounts and determine the new balances Allowance for Doubtful Accounts Apr 3 13,210 an 1 Balance 48,400 July 16 23,700 Dan. 19 2,305 Dec. 31 22,615 Nov. 23 3,755 Dec. 31 Unadjusted Balance Dec. 31 Adjusting Entry Dec. 31 Adjusted Balance Bad Debt Expense Dec. 31 Adjusting Entry 3. Determine the expected not realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry) 4. Assuming that instead of bating the provision for uncollectible accounts on an analysis of receivables, the adjusting entry on December It had been based on an estimated expenu of Wor 1% of the sales of $7.210,000 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 Expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry)
