Chapter 16 Homework eBook Calculator 1. EX. 16.02A Algo Instructions General Journal Net Realizable Value 2. EX.16.03A. Algo Instructions 3. EX.16.04A.Algo Uncollectible Accounts-Allowance Method 4. PR. 16.08A. Guided.Algo 1. Open the three selected general ledger accounts. 2. Enter the transactions and the adjusting and closing entries in a general journal (page 6). After each entry, post only to the three accounts named. If an amount box does not require an entry, leave it blank. 3. Determine the net realizable value as of December 31. Pyle Nurseries used the allowance method to record the following transactions, adjusting entries, and closing entries during the year ended December 31, 20--: Feb. 9 Received 63% of the $4,700 balance owed by Wiley's Waterworks, a bankrupt business, and wrote off the remainder as uncollectible. May 28 Reinstated the account of Amanda Akin, which had been written off in the preceding year, and received $1,976 cash in full settlement. Aug. 16 Wrote off the $5,506 balance owed by JoJo Xu as uncollectible. Oct. 5 Reinstated the account of Tomi Kennedy which had been written off in the preceding year, and received $3,063 cash in full settlement. Dec. 28 Wrote off the following accounts as uncollectible, in compound entry form: Jacobs & Wilson, $11,082; Specialty Landscapes, $15,011; Kiana Hoyer, $13,324. 31 Based on an aging analysis of the $954,120 of accounts receivable, it was estimated that $48,700 will be uncollectible. Made the adjusting entry. 31 Made the entry to close the appropriate account to Income Summary. Selected accounts and beginning balances on January 1, 20--, are as follows: 122.1 Allowance for Doubtful Accounts $42,972 credit 313 Income Summary 532 Bad Debt Expense General Journal X 1. Open the three selected general ledger accounts. 2. Enter the transactions and the adjusting and closing entries in a general journal (page 6). After each entry, post only to the three accounts named. If an amount box does not require an entry, leave it blank. Page: 6 DATE ACCOUNT TITLE DOC. POST. NO. REF. DEBIT CREDIT 1 20-- Feb. 9 Cash 2,961 1 Accounts Receivable/Wiley's Waterworks 2 2,961 2 3 Collection on account 3 4 4 5 Feb. 9 Allowance for Doubtful Accounts 122.1 1,739 5 6 Accounts Receivable/Wiley's Waterworks 1,739 6 7 Wrote off uncollectible account 7 8 8 9 May 28 Accounts Receivable/Amanda Akin 1,976 9 Allowance for Doubtful Accounts 10 122.1 1,976 10 11 Reinstated account receivable 11 12 12 13 May 28 Cash 1,976 13 14 Accounts Receivable/Amanda Akin 1,976 14 15 Collection on account 15 16 16 17 Aug. 16 Allowance for Doubtful Accounts 122.1 5,506 17 Accounts Receivable/JoJo Xu 18 5,506 18 19 Wrote off uncollectible account 19 20 20 21 Oct. 5 Accounts Receivable/Tomi Kennedy 3,063 21 Allowance for Doubtful Accounts 22 122.1 3,063 22 General Journal Allowance for Doubtful Accounts 22 122.1 3,063 22 23 Reinstated account receivable 23 24 24 25 Oct. 5 Cash 3,063 25 26 Accounts Receivable/Tomi Kennedy 3,063 26 27 Collection on account 27 28 28 29 Dec. 28 Allowance for Doubtful Accounts 122.1 39,417 > 29 Accounts Receivable/Jacobs and Wilson 30 11,082 30 31 Accounts Receivable/Specialty Landscapes 15,011 31 32 Accounts Receivable/Kiana Hoyer 13,324 32 33 Wrote off uncollectible accounts 33 34 34 35 Dec. 31 Bad Debt Expense 532 35 8 Allowance for Doubtful Accounts 36 122.1 36 37 Adjusting entry 37 38 38 39 Dec. 31 Income Summary 313 39 II UU 40 Bad Debt Expense 532 40 41 Closing entry 41 Feedback Check My Work When determining the amount of the adjusting entry consider how the balance in the allowance for doubtful accounts will affect the entry and ask the following questions: What is the normal balance for the allowance for doubtful accounts? Why would the allowance account have a credit balance? Why would the allowance account have a debit balance? Would the adjusting entry need to be for more or less than the estimated amount calculated in the aging schedule in order to have the correct balance in the account after the adjusting Net Realizable Value X 3. Determine the net realizable value as of December 31. s Feedback Check My Work Incorrect