Allowant 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 Garley, which had been written off in the preceding year as uncollectible, Journalized the receipt of $1.760 cash in full payment of Arlene's account Apr 3. Wrote off the $10.080 balance owed by Premier S Co which is bankrupt. July 16. Received 25% of the $18.100 balance owed by Hayden Co.. a bankrupt business, and wrote of the remainder as uncollectible Nov, 23. Reinstated the account of Harry Cart which had been written off two years earlier as uncollectible. Recorded the receipt of 52,870 cash in fill payment Dec. 31. Wrote off the following accounts as uncollectible (compound entry): Cavey Co., 57.585; Fogle Co., $2,255 : Lake Furniture, 55.790 Melinda Shrver, 51,635 Dec 31. Based on an analysis of the $694,700 of accounts receivable, it was estimated that $38.900 will be uncollectiblesumalized the adjusting entry en un momentos 44700 Account Rewe Antena ty 1.766 Alle For Doll Account Account Recerable Arlene Gly Anwance for the Arco 430 13:33 Allowance for the con Accueil de ce 11 Arnecevable Barrycan Alle for Acco 2 To Accounts Receivable Harry Car 17365 TS Allowance for Doubtful Account Accable carry ACCOutstartivatir fast, Accounts Receivable La Accounts Receivable Med Sheyes 2255 65 VSGVODIG TOTUU 2,870 Nov. 23 Accounts Receivable-Harry Carr Allowance for Doubtful Accounts 2,870 Nov. 23 Cash 2,870 Accounts Receivable-Harry Carr 2,870 Dec. 31 Allowance for Doubtful Accounts 17,265 7,585 Accounts Receivable-Cavey Co. Accounts Receivable-Fogle Co. 2,255 Accounts Receivable-Lake Furniture 5,790 Accounts Receivable-Melinda Shryer 1,635 Dec. 31 Bad Debt Expense Allowance for Doubtful Accounts 2. b. Post each entry that affects the following T accounts and determine the new balances: Allowance for Doubtful Accounts Jan. 1 Balance Dec. 31 Adjusted Balance ad Debt Expense that the man # The the content December de her the call the Bad Debt Expense 3 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 $5,520,000 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)
