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 $$2,660$ cash in full

payment of Arlene's account.

Apr. $3.$ Wrote off the $$12,750$ balance owed by Premier GS Co$.,$ which is bankrupt.

July $16.$ Received $25\%$ of the $$22,000$ 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 $$4,000$ cash in full payment.

Dec. $31.$ Wrote off the following accounts as uncollectible $($compound entry$)$: Cavey Co$.,$

$$3,300$; Fogle Co$.,$ $$8,100$; Lake Furniture, $$11,400$; Melinda Shryer, $$1,200.$

Based on an analysis of the $$2,350,000$ of accounts receivable, it was estimated

that $$60,000$ will be uncollectible. Journalized the adjusting entry.

Instructions

Record the January $1$ credit balance of $$50,000$ in a T account for Allowance for

Doubtful Accounts.

Journalize the transactions. Post each entry that affects the following $T$ accounts and

determine the new balances:

Allowance for Doubtful Accounts

Bad Debt Expense

Determine the expected net realizable value of the accounts receivable as of December

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 $\frac{1}{2}$ of $1\%$ of the sales of $$15,800,000$ for the year, determine the following:

a$.$ Bad debt expense for the year.

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

c$.$ Expected net realizable value of the accounts receivable as of December $31.$