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 $$2,450$ cash in full payment of Arlene$$s account.

Apr. $3$ Wrote off the $$14,040$ balance owed by Premier GS Co$.,$ which is bankrupt.

July $16$ Received $30\%$ of the $$25,200$ 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 $$3,995$ cash in full payment.

Dec. $31$ Wrote off the following accounts as uncollectible $($one entry$)$: Cavey Co$.,$ $$10,560$; Fogle Co$.,$ $$3,135$; Lake Furniture, $$8,060$; Melinda Shryer, $$2,280.$

$31$ Based on an analysis of the $$1,244,300$ of accounts receivable, it was estimated that $$54,100$ will be uncollectible. Journalized the adjusting entry.

Required:

$1.$ Record the January $1$ credit balance of $$51,500$ in a T account presented below in requirement $2$b for Allowance for Doubtful Accounts.

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$2.$ 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 $$1,244,300$ balance in accounts receivable reflects the adjustments made during the year.

Jan. $19-$reinstate

Jan. $19-$collection

Apr. $3$

July $16$

Nov. $23-$reinstate

Nov. $23-$collection

Dec. $31-$write$-$off

Dec. $31-$adjusting

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

Allowance for Doubtful Accounts

fill in the blank e$9$eb$43$f$4703$bfa$8\_2$

Jan. $1$ Balance fill in the blank e$9$eb$43$f$4703$bfa$8\_3$

fill in the blank e$9$eb$43$f$4703$bfa$8\_5$

fill in the blank e$9$eb$43$f$4703$bfa$8\_7$

fill in the blank e$9$eb$43$f$4703$bfa$8\_9$

fill in the blank e$9$eb$43$f$4703$bfa$8\_11$

fill in the blank e$9$eb$43$f$4703$bfa$8\_13$

fill in the blank e$9$eb$43$f$4703$bfa$8\_15$

Dec. $31$ Adjusted Balance fill in the blank e$9$eb$43$f$4703$bfa$8\_16$

Bad Debt Expense

fill in the blank e$9$eb$43$f$4703$bfa$8\_18$

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$3.$ 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 c$87$c$27$fe$4$f$89$fa$9\_1$

$4.$ 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 $(1)/(2)$ of $1\%$ of the sales of $$7,680,000$ for the year, determine the following:

a$.$ Bad debt expense for the year.

$fill in the blank c$87$c$27$fe$4$f$89$fa$9\_2$

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

$fill in the blank c$87$c$27$fe$4$f$89$fa$9\_3$

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 c$87$c$27$fe$4$f$89$fa$9\_4$