Entries Related to Uncollectible Accounts

The following transactions were completed by The Wild Trout Gallery during the current fiscal year ended December 31:

Jan. 19.	Reinstated the account of Arlene Gurley, which had been written off in the preceding year as uncollectible. Journalized the receipt of $1,770 cash in full payment of Arlenes account.
Apr. 3.	Wrote off the $10,140 balance owed by Premier GS Co., which is bankrupt.
July 16.	Received 45% of the $18,200 balance owed by Hayden Co., a bankrupt business, and wrote off the remainder as uncollectible.
Nov. 23.	Reinstated the account of Harry Carr, which had been written off two years earlier as uncollectible. Recorded the receipt of $2,885 cash in full payment.
Dec. 31.	Wrote off the following accounts as uncollectible (one entry): Cavey Co.,$7,630; Fogle Co., $2,265; Lake Furniture, $5,825; Melinda Shryer, $1,645.
Dec. 31.	Based on an analysis of the $899,300 of accounts receivable, it was estimated that $39,100 will be uncollectible. Journalized the adjusting entry

Required: 1. Record the January 1 credit balance of $37,200 in a T account presented below in requirement 2b for Allowance for Doubtful Accounts. 2. a. Journalize the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. Note: For the December 31 adjusting entry, assume the $899,300 balance in accounts receivable reflects the adjustments made during the year. Jan. 19-reinstate Accounts Receivable-Arlene Gurley 1,770 Allowance for Doubtful Accounts 1,770 Cash Jan. 19-collection 1,770 Accounts Receivable-Arlene Gurley 1,770 Apr. 3 10,140 Allowance for Doubtful Accounts Accounts Receivable-Premier GS Co. 10,140 July 16 Cash 8,190 Allowance for Doubtful Accounts 10,010 Accounts Receivable-Hayden Co. 18,200 Nov. 23-reinstate Accounts Receivable-Harry Carr 2,885 Allowance for Doubtful Accounts 2,885 Nov. 23-collection Cash 2,885 Accounts Receivable-Harry Carr 2,885 Dec. 31-write-off Allowance for Doubtful Accounts 17,365 Accounts Receivable-Cavey Co. 7,630 2,265 Accounts Receivable-Fogle Co. Accounts Receivable-Lake Furniture 5,825 Accounts Receivable-Melinda Shryer 1,645 Dec. 31-adjusting Bad Debt Expense 42,950 Allowance for Doubtful Accounts 42,950 2. b. Post each entry that affects the following T accounts and determine the new balances: Allowance for Doubtful Accounts Apr. 3 10,140 Jan. 1 Balance 37,200 July 16 10,010 Jan. 19 1,770 Dec. 31 17,265 x Nov. 23 2,885 41,855 X Dec. 31 Unadjusted Balance Dec. 31 Adjusting Entry -4,340 X Dec. 31 Adjusted Balance 37,515 X Bad Debt Expense Dec. 31 Adjusting Entry 4,340 X 3. Determine the expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry). $ 861,785 X 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 $5,550,000 for the year, determine the following: a. Bad debt expense for the year. $ 27,750 b. Balance in the allowance account after the adjustment of December 31. $ 64,950 X c. Expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry). 834,350 X $