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 $2,080 cash in full payment of Arlene's account Apr 3 Wrote of the $11,920 balance owed by Premier GS Co, which is bankrupt. July 16 Received 25% of the $21.400 balance owed by Hayden Co, a bankrupt business, and wrote off the remainder as uncollectible Reinstated the account of Harry Care, which had been written off two years earlier as uncollectible. Recorded the receipt of $3,390 Nov. 23 cash in full payment. Dec. 31 Wrote off the following accounts as uncollectible (one entry): Cavey Co.,$8,965; Fogle Co., $2,660, Lake Furniture, $6,845; Melinda Shryer, $1,935 Based on an analysis of the $1,055,700 of accounts receivable, it was estimated that $45,900 will be uncollectible, Journalized Dec 31 the adjusting entry Required: 1. Record the January 1 credit balance of $43,700 in a T account presented below in requirement 2b for Allowance for Doubtful Accounts 2. 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 $1,055,700 balance in accounts receivable reflects the adjustments made during the year Jan. 19-reinstate Jan 19-collection 10 Apr. eBook Show Me How July 16 59 Nov. 23-reinstate 1 1 Nov. 23-collection Dec. 31-write-off 11 Dec. 31-adjusting 2 is DAL 2. b. Post each entry that affects the following accounts and determine the new balances: Allowance for Doubtful Accounts Jan. 1 Balance Dec 31 Adjusted Balance Bad Debt Expense 3. Determine the expected net reliable 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 of 1% of the sales of $6,520,000 for the year, determine the following 3. Bad debt expense for the year. b. Balance in the allowance account after the adjustment of December 31. Expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry)