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 $2,415 cash in full payment of Arlene's account. Apr. 3 Wrote off the $13,840 balance owed by Premier GS Co., which is bankrupt. July 16 Received 30% of the $24,800 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 $3,935 cash in full payment. Dec. 31 Wrote off the following accounts as uncollectible (one entry): Cavey Co., $10,410; Fogle Co., $3,090; Lake Furniture, $7,945; Melinda Shryer, $2,245. 31 Based on an analysis of the $1,223,600 of accounts receivable, it was estimated that $53,200 will be uncollectible. Journalized the adjusting entry. Required: 1. Record the January 1 credit balance of $50,700 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 $1,223,600 balance in accounts receivable reflects the adjustments made during the year. Dec. 31-write-off Allowance for Doubtful Accounts 23,690 Accounts Receivable-Cavey Co. 10,410 Accounts Receivable-Fogle Co. 3,090 1111 Accounts Receivable-Lake Furniture 7,945 Accounts Receivable-Melinda Shryer 2,245 Dec. 31-adjusting Bad Debt Expense 53,200 X Allowance for Doubtful Accounts 53,200 X 2. b. Post each entry that affects the following T accounts and determine the new balances: Allowance for Doubtful Accounts Apr. 3 13,840 Jan. 1 Balance 50,700 July 16 17,360 Jan. 19 2,415 Dec. 31 23,690 Nov. 23 3,935 Dec. 31 Unadjusted Balance 2,160 Dec. 31 Adjusting Entry 53,200 x Dec. 31 Adjusted Balance 57,050 X Bad Debt Expense Dec. 31 Adjusting Entry 57,050 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). $ 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 1/2 of 1% of the sales of $7,550,000 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 (after all of the adjustments and the adjusting entry)