Entries Related to Uncollectible Accoants The following transactions were completed by The Wild Treat Galery during the curment fiscal year ended December 31: Jan. 19. Reinstated the account of Arlene Gurfey, which had been written off in the preceding year as uncollectible. Journalized the rece pt of $2,660 cash in full payment of Adene's account. Apr. 3. Wrote off the $12,750 balance owed by Premier 55Co which is bankriapt. fuly 16. Heceived 25\% of the 522,000 balance owed by Hayden Co. a bankrupt business, and wrote aff the remainder as uncollectible. How. 2.. Reinstated the iccount of Harry Carr, which had been written off two years earlier as uncolhectible. Recorded the receipt of F4,000 cash in full payment. Doe 31 Wrote off the following aceeunts as uncollecoble (one entry): Cavey Co., 53, 300; Fogle Co; 58,100; Lake Furniture, $11,400; Nelinda shryer, $1,200. Doe. 31. Bosed on an analyais of the 52,350,000 of mecounts receivable, it was estimated that $60,000 will be uncollectible, Journalized the adjusting entry. Required: 1. Record the January 1 crodit bolance of $50;000 in a Tiaccecant presented below in requirement 2b for Allawance for Boubthal Accounts 2. a. Journalize the trangactions. For a compound transaction, if an ampent box does not require an entry, leave it hlank, Note: For the December 31 adjusting entry, sssume the $2.750,000 balance in accounts receivable refiects the adjustrnents made during the year. July 16 Nov. 23-reinstate Nov. 23-collection Dec. 31-write-off Dec. 31-adjusting 2. b. Aest each entry that affects the following T accounts and determine the new balances: 3. Detemine the expected net realitable value of the accounts receivable as of December 31 (uitter all of the adjustments and the adjustang entry). 4. Assuming that instead of basang the provision for uncollextbble accounte on an analysis of receivathes the odjusting entry on Deceraber Jt had been bakid on an eitimated expense of h of 174 of the sales of $15,600,000 for the year, determine the followingt a. Bad debt cxpenice for the year. 3 b. Balance in the allowance account after the adjustment of December 31 . 3. Determine the expected niet realizable value of the accounts recenable as of December 31 (after all of the adjustments and the adjusting entry). 4. Asguming that imstead of basing the provision for uncollectible accounts on an analysis of receivables the adjusting entry on December 31 had been based on estimated expense of 1/2 of 1% of the sales of $15,800,000 for the vear, determine the following: a. Bod debt expense for the year. b. Batance in the allowance account after the adjustment of December 31 . c. Expected net realiable value of the accounts receivable as of Decernber 31 (after all of the adjustments and the adjusting entry)
