Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 $2,175 cash in full payment of Arlene's account. Apr 3 Wrote off the $12,460 balance owed by Premier GS Co., which is bankrupt. July 16 Received 40% of the $22,400 balance owed by Hayden Co., a bankrupt business, and wrote of 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 $3,545 cash in full payment. Dec. 31 Wrote off the following accounts as uncollectible (one entry): Cavey Co., $9,375; Fogle Co. $2,785; Lake Furniture, $7,155; Melinda Shryer, $2,025. 31 Based on an analysis of the $1,104,000 of accounts receivable, it was estimated that $48,000 will be uncollectible. Journalized the adjusting entry Hequired 1. Record the lay once 45,700 namurt med ett Alan Dotel Account 1. Rounter the transaction. If an amount to delete travel for the intentar entre 51.10.000 lei masen dan 10 Astendivale Ariana Gurley Alliance for all Arenunte Im 19- CV runts Heelvelde Guter Al wants for Defecante Account Rectable-Frame 6 Ats Alliance for the Nov 15 runt hiene Helvalle Harry Care 2 con Cash Account eceivable Harry Car De wont Allowance for Douth AS Account Receivable avec Account Receivable Pogle ce Accounts Receivableta Accounts receivable Halinda Shryer u bl. II 01 00 Deting Debt Copene Alcare for Account 2. b. Post each entry that affects the following T accounts and determine the new balances: Allowance for Doubtful Accounts Jan. 1 Balance Dec. 31 Adjusted Balance Sad Dette Sewa Radiother of accounts for the course In recente berice, the mountain by my wit has recente rot of these The most of bad te affected by the centre ance 1. Denement te eettet et stort of December 3 (her er et mettere she got Admin handed of being the proanto como en un cambio, the ring wtry on December 31 talented on a new work of the sales Balance in the counter xpected rette var at the conta cecusable as of December 21 war er bestety Recall that under the allowance method, the entry to write off an account debits Allowance for Doubtful Accounts and credits Accounts Receivable. In such cases where an account receivable that has been written off is later collected, the account is reinstated by an entry that reverses the write-off entry. Then The amount of bad debt expense is affected by the balance in the allowance account. 3. Determine the expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry) 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 estiu 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 (after all of the adjustments and the adjusting entry) Feedback Check My Won Remember that net realizable value is the amount that is expected to be collected or realized. Bad Debt Expense Dec. 31 Adjusting Entry Feedback

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

European Financial Reporting Adapting To A Changing World

Authors: J. Flower

2nd Edition

0333685180, 9780333685181

More Books

Students also viewed these Accounting questions

Question

Describe the major types of BI users.

Answered: 1 week ago