Analvesis of Roceivabios Mectind method, the belance of Alowance for Doubthul Accounts is estimated as $26,600. a. Determine the smeunt of the adfucting entry for uncolectiple accounts. b. Detormine the adjusted balances of Accounts Recenable. Alewance for Doubcful Accounds, and liad Pebe twresriee. c. Petermine the net reatizabie valie of accounts receivable. Aadustreent tor bwoolecteis Arcourts a crede balancs uf 134,355 befare adfuttment an august 3 ! lowmaice the adjutaing entry for uncellectible accounts as of August 31. If an ambecnt box does not requre an entry, leare it biank. Asc31 Critries Related to Urinolectible Acteunts The following fransectiont were comploted by The wisd. Trout Gallery during the currert fiscal year ended December 3t I laf. 19 fieinstated the account of Arlene Curiev, which had been written atr in the precoding year as uncollectiale. Journaland the feceigt of \$2,0td cash in full payment of Arienes account. Aar. 3 Wrote off the 111,520 batance ewed by Premier 65 co. which is bankrupt. Maty. 16 fecelved 304 of the 120,700 batance emed ty Hayden Ces, a bankrunit business, and arote off the remainder as uncollectibie. How 23 Reintated the acceunt of Harry Cac;, which had been written eAt rao years earfier as uncollectbie. Hecocded the recest of s3, zJs cath in fuil payinest. 5 shrec, 31,370. adjusting entryi Reequiredi 1. fecord the January 3 credit balance of 542,200 in a T account presented beloe in requirement 20 for Alowance for Deutuful Acriakt s. 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 Recelvable-Hayden Co. Nov. 23-reinstate Accounts Recelvable-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 Feedback T Check My Work Set up T accounts. Recall that under the allowance method, the entry to write off an account debits Allowance for Doubtful Accou In such cases where an account receivable that has been written off is later collected, the account is reinstate payment for the account. The amount of bad debt expense is affected by the balance in the allowance account. 2. b. Post each entry that affects the following T accounts and determine the new balances: 2. b. fost each ontry that affecti the following t accounts and determine the new baiasces: Penitara t ches meyst Set up ti dscounts. paythent for the account. The ampunt of bod dfbe expense is affected by. the balance in the aliawanoe acecunt. 3. Determine the expected net reelirabile value ef the accounts ieceivalile as of December 31 (after ab of the afyutrientis and tfe adjuthing antoy). the sales of $6,290,000 for the yeac, determine the folsowing: 3. Bad dehit expense for the year b. Elalance in the aliowance accouvt after the adjustment of December 31 . Expected net fealizabie value of the bccounts recelvable as of December 31 (atter alf of the adjuctments and the adjusting entry. * Geck Mi hisa Romember that net realizable value is the amount that is oxpected to be collected or realired. the amount that wil wield an adjusted balance for Alowance for Doubtul Accounts equal to that estimated by the aging schedule. The analysis of recelvables method is based on the assumptisa that the longer an acoourt recevable is outstandiag the Iors likaly that it wilt be collected
