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 $2,130 cash in full payment of Arlenes account.
Apr.	3	Wrote off the $12,200 balance owed by Premier GS Co., which is bankrupt.
July	16	Received 40% of the $21,900 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 $3,470 cash in full payment.
Dec.	31	Wrote off the following accounts as uncollectible (one entry): Cavey Co., $9,180; Fogle Co., $2,725; Lake Furniture, $7,010; Melinda Shryer, $1,980.
	31	Based on an analysis of the $1,078,700 of accounts receivable, it was estimated that $46,900 will be uncollectible. Journalized the adjusting entry.

Required:

1. Record the January 1 credit balance of $44,700 in a T account presented below in requirement 2b for Allowance for Doubtful Accounts.

2. a. Journalize the transactions. If an amount box does not require an entry, leave it blank. Note: For the December 31 adjusting entry, assume the $1,078,700 balance in accounts receivable reflects the adjustments made during the year.

Jan. 19-reinstate		fill in the blank 754fe0067faa06e_2	fill in the blank 754fe0067faa06e_3
		fill in the blank 754fe0067faa06e_5	fill in the blank 754fe0067faa06e_6
Jan. 19-collection		fill in the blank 754fe0067faa06e_8	fill in the blank 754fe0067faa06e_9
		fill in the blank 754fe0067faa06e_11	fill in the blank 754fe0067faa06e_12
Apr. 3		fill in the blank 754fe0067faa06e_14	fill in the blank 754fe0067faa06e_15
		fill in the blank 754fe0067faa06e_17	fill in the blank 754fe0067faa06e_18
July 16		fill in the blank 754fe0067faa06e_20	fill in the blank 754fe0067faa06e_21
		fill in the blank 754fe0067faa06e_23	fill in the blank 754fe0067faa06e_24
		fill in the blank 754fe0067faa06e_26	fill in the blank 754fe0067faa06e_27
Nov. 23-reinstate		fill in the blank 754fe0067faa06e_29	fill in the blank 754fe0067faa06e_30
		fill in the blank 754fe0067faa06e_32	fill in the blank 754fe0067faa06e_33
Nov. 23-collection		fill in the blank 754fe0067faa06e_35	fill in the blank 754fe0067faa06e_36
		fill in the blank 754fe0067faa06e_38	fill in the blank 754fe0067faa06e_39
Dec. 31-write-off		fill in the blank 754fe0067faa06e_41	fill in the blank 754fe0067faa06e_42
		fill in the blank 754fe0067faa06e_44	fill in the blank 754fe0067faa06e_45
		fill in the blank 754fe0067faa06e_47	fill in the blank 754fe0067faa06e_48
		fill in the blank 754fe0067faa06e_50	fill in the blank 754fe0067faa06e_51
		fill in the blank 754fe0067faa06e_53	fill in the blank 754fe0067faa06e_54
Dec. 31-adjusting		fill in the blank 754fe0067faa06e_56	fill in the blank 754fe0067faa06e_57
		fill in the blank 754fe0067faa06e_59	fill in the blank 754fe0067faa06e_60

2. b. Post each entry that affects the following T accounts and determine the new balances:

Allowance for Doubtful Accounts
	fill in the blank b53045022f9901b_2	Jan. 1 Balance	fill in the blank b53045022f9901b_3
	fill in the blank b53045022f9901b_5		fill in the blank b53045022f9901b_7
	fill in the blank b53045022f9901b_9		fill in the blank b53045022f9901b_11
			fill in the blank b53045022f9901b_13
			fill in the blank b53045022f9901b_15
		Dec. 31 Adjusted Balance	fill in the blank b53045022f9901b_16

Bad Debt Expense
	fill in the blank b53045022f9901b_18

3. Determine the expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry). $fill in the blank cf1bdc07907e01f_1

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 of 1% of the sales of $6,660,000 for the year, determine the following:

a. Bad debt expense for the year. $fill in the blank cf1bdc07907e01f_2

b. Balance in the allowance account after the adjustment of December 31. $fill in the blank cf1bdc07907e01f_3

c. Expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry). $fill in the blank cf1bdc07907e01f_4