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 $$2,670$ cash in full payment of Arlene's account.

Apr. $3.$

July $16$

Nov, $23.$

Dec. $31.$

Dec. $31.$

Wrote off the $$15,300$ balance owed by Premier GS Co$.,$ which is bankrupt.

Received $35\%$ of the $$27,400$ balance owed by Hayden Co$.,$ a bankrupt business, and wrote off the remainder as uncollectible.

Reinstated the account of Harry Carr, which had been written off two years earlier as uncollectible, Recorded the receipt of $$4,350$ cash in full payment.

Wrote off the following accounts as uncollectible $($one entry$)$: Cavey Co$.,$ $$11,510$; Fogle Co$.,$ $$3,420$; Lake Furniture, $$8,785$; Melinda Shryer, $$2,485.$

Based on an analysis of the $$1,354,700$ of accounts receivable, it was estimated that $$58,900$ will be uncollectible. Journalized the adjusting entry.

Required:

Record the January $1$ credit balance of $$56,100$ in a T account presented below in requirement $2b$ for Allowance for Doubtful Accounts.

a$.$ Journalize the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. Note: For the December $31$ adjusting entry, assume the $$1,354,700$ balance in accounts receivable reflects the adjustments made during the year.

Jan. $19-$reinstate

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

Allowance for Doubtful Accounts

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

Assuming that instead of basing the provision for uncollectible accounts on an analysis of recelvables, the adjusting entry on December $31$ had been based on an estimated expense of $\frac{1}{2}$ of $1\%$ of the sales of $$8,360,000$ 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$).$