eBook Show Me How Calculator The following transactions were completed by Daws Company during the current fiscal year ended December 31 Jan. 29 Received 35% of the S9.000 balance owed by Kovar Co., a bankrupt business, and wrote off the remainder as uncollectible. Apr 18 Reinstated the account of Spencer Clark, which had been witten oft in the preceding year as Aug. 9 Wrote off the $11,850 balance owed by Iron Horse Co., which has no assets. Nov.7 Reinstated the account of Vinyl Co, which had been witten of in the preceding year as uncollectible Dec 31 Wrote off the following accounts as uncollectible (one entry) Beth Connelly Inc. $12.100 DeVine uncollectible. Journalized the receipt of $4,000 cash in full payment of Clark's account Journalized the receipt of $7,000 cash in full payment of the account $8,110, Moser Distributors, $21,950, Oceanic Optics, $10.000 Based on an analysis of the $1,450.000 of accounts receivable, it was estimated that $60,000 will be uncollectible. Journalized the adjusting entry Dec. 31 Required: 1. Record the January 1 credit balance of $54 200 in a T account for Allowance for Doubtful Accounts 2 A. Journalize the transactions For the December 31 adjusting entry assume the $1,430,000 balance in accounts receivabie refiects tne adjustments made durnng the year Reter to the chart of accounts for a listing of the account tities the company uses B. Post each entry that affects the foliowing selected T accounts and determine the new balances Alowence tor Douotful Accounts and Bad Debt Expense Determine the expected net reaizebile valce of the accounts recenaais as of Decemper 31 (after allor tne adjustments and the aajusting entry) 4. Assuming that insteed of basing the provision for uncarectible accounts on en analysis of receivabies tne adjusting entry on December 31 had Check My Work Previous uthe tollowing accounts as uncollectible (one entry) Beth Connelly inc, $12.100; DeVine Co $8.110. Moser Distributors, $21,950, Oceanic Optics, $10,000 Dec 31 Based on an analysis of the $1,450,000 of accounts receivable, it was estimated that $60,000 will be uncollectible. Journalized the adjusting entry Required: 1. Record the January 1 credt balance of $54 200 in a T account for Allowance for Doubtfua Accounts 2 A Jounalize the transactions. For the December 31 adjusting entry, assume the 51 450,000 balance in accounts receivable reflects the adustments made during the year Refer to the chart of accounts for isting of the account tities the company uses Post each entry that affects the folowing selected T accounts and determine the new balances: Allowance for Doubtful Accounts and Bad Debt Expense B. 3. Determine the expected net realzable value of the accounts recenvable as of December 31 (after all of the adjustments and the edusting entry) 4. Assuming that instead of basing the provision for uncoilectible accounts on an analysis of teceivables the adjusting entry on December 31 had been based on an estimated expense ons of 1% or the sales of $13.200.000 for the year, determine the following B. Balance in the allowance account ater the adjustment of December 31 C.: Expected net realizable value of the accounts receivable as of December 31 Previc All work saved. Save and Exit Submit Ass
