Entries Related to Uncollectible Accounts The following transactions were completed by The Spencer Gallery during the current fiscal year ended December 31: Mar. 15. Reinstated the account of Brad Atwell, which had been written off in the preceding year as uncollectible. Journalized the receipt of $2,070 cash in full payment of Brad's account. wrote off the $11,860 balance owed by Glory Rigging Co., which is bankrupt. May 20. Aug. 13. Received 25% of the $21,300 balance owed by Coastal Co a bankrupt business, and wrote off the remainder as uncollectible. Sept. 2. Reinstated the account of Lorie Kidd, which had been written off two years earlier as uncollectible. Recorded the receipt of $3,375 cash in full payment. Dec. 31 Wrote off the following accounts as uncollectible (compound entry): Kimbro Co., $8,920; McHale Co., $2,650; Summit Furniture, $6,810; Wes Riggs, $1,925. Dec. 31 Based on an analysis of the $1,051,100 of accounts receivable, it was estimated that $45,700 will be uncollectible. Journalized the adjusting entry. Required: 1. Record the January 1 credit balance of $43,500 in a Taccount (below) for Allowance for Doubtful Accounts Hide 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 $1,051,100 balance in accounts receivable reflects the adjustments made during the year. Mar. 15-reinstate Mar. 15-collection May 20 Aug. 13