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 $1,505 cash in full payment of Arlenes account. Apr. 3 Wrote off the $8,620 balance owed by Premier GS Co., which is bankrupt. July 16 Received 45% of the $15,500 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 $2,455 cash in full payment. Dec. 31 Wrote off the following accounts as uncollectible (one entry): Cavey Co., $6,485; Fogle Co., $1,925; Lake Furniture, $4,950; Melinda Shryer, $1,400. 31 Based on an analysis of the $763,600 of accounts receivable, it was estimated that $33,200 will be uncollectible. Journalized the adjusting entry. Required: 1. Record the January 1 credit balance of $31,600 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 $763,600 balance in accounts receivable reflects the adjustments made during the year. Jan. 19-reinstate Accounts Receivable-Arlene Gurley Accounts Receivable-Arlene Gurley 1,505 Accounts Receivable-Arlene Gurley 0 Allowance for Doubtful Accounts Allowance for Doubtful Accounts 0 Allowance for Doubtful Accounts 1,505 Jan. 19-collection Cash Cash 1,505 Cash 0 Accounts Receivable-Arlene Gurley Accounts Receivable-Arlene Gurley 0 Accounts Receivable-Arlene Gurley 1,505 Apr. 3 Allowance for Doubtful Accounts Allowance for Doubtful Accounts 8,620 Allowance for Doubtful Accounts 0 Accounts Receivable-Premier GS Co. Accounts Receivable-Premier GS Co. 0 Accounts Receivable-Premier GS Co. 8,620 July 16 Cash Cash 6,975 Cash 0 Allowance for Doubtful Accounts Allowance for Doubtful Accounts 8,525 Allowance for Doubtful Accounts 0 Accounts Receivable-Hayden Co. Accounts Receivable-Hayden Co. 0 Accounts Receivable-Hayden Co. 15,500 Nov. 23-reinstate Accounts Receivable-Harry Carr Accounts Receivable-Harry Carr 2,455 Accounts Receivable-Harry Carr 0 Allowance for Doubtful Accounts Allowance for Doubtful Accounts 0 Allowance for Doubtful Accounts 2,455 Nov. 23-collection Cash Cash 2,455 Cash 0 Accounts Receivable-Harry Carr Accounts Receivable-Harry Carr 0 Accounts Receivable-Harry Carr 2,455 Dec. 31-write-off Allowance for Doubtful Accounts Allowance for Doubtful Accounts 14,760 Allowance for Doubtful Accounts 0 Accounts Receivable-Cavey Co. Accounts Receivable-Cavey Co. 0 Accounts Receivable-Cavey Co. 6,485 Accounts Receivable-Fogle Co. Accounts Receivable-Fogle Co. 0 Accounts Receivable-Fogle Co. 1,925 Accounts Receivable-Lake Furniture Accounts Receivable-Lake Furniture 0 Accounts Receivable-Lake Furniture 4,950 Accounts Receivable-Melinda Shryer Accounts Receivable-Melinda Shryer 0 Accounts Receivable-Melinda Shryer 1,400 Dec. 31-adjusting Bad Debt Expense Bad Debt Expense Bad Debt Expense 0 Allowance for Doubtful Accounts Allowance for Doubtful Accounts 0 Allowance for Doubtful Accounts Feedback Set up T accounts. 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 record the receipt of cash as payment for the account. The amount of bad debt expense is affected by the balance in the allowance account. 2. b. Post each entry that affects the following T accounts and determine the new balances: Allowance for Doubtful Accounts Apr. 3 fill in the blank 117b59f89fc9f8b_2 8,620 Jan. 1 Balance fill in the blank 117b59f89fc9f8b_3 31,600 July 16 fill in the blank 117b59f89fc9f8b_5 8,525 Jan. 19 fill in the blank 117b59f89fc9f8b_7 1,505 Dec. 31 fill in the blank 117b59f89fc9f8b_9 14,760 Nov. 23 fill in the blank 117b59f89fc9f8b_11 2,455 Dec. 31 Unadjusted Balance fill in the blank 117b59f89fc9f8b_13 3,655 Dec. 31 Adjusting Entry fill in the blank 117b59f89fc9f8b_15 Dec. 31 Adjusted Balance fill in the blank 117b59f89fc9f8b_16 33,200 Bad Debt Expense Dec. 31 Adjusting Entry fill in the blank 117b59f89fc9f8b_18 Feedback Set up T accounts. 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 record the receipt of cash as payment for the account. 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). $fill in the blank 946417043045fe4_1 730,400 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 $4,710,000 for the year, determine the following: a. Bad debt expense for the year. $fill in the blank 946417043045fe4_2 23,550 b. Balance in the allowance account after the adjustment of December 31. $fill in the blank 946417043045fe4_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 946417043045fe4_4