Entries Related to Uncollectible Accounts The following transactions were completed by The Wid Trout Galery during the current fiscal year ended December 31: Jan. 19 Reinstated the account of Anne Gurley, which had been written off in the preceding year as uncolectible. Journalzed the receipt of $2,200 cash in full payment of Arlene's account. Apt 3 Wrote of the 512,610 balance owed by Piemer GS Co, which bankrupt Duly 16 Received 35% of the $22,600 balance awed by Hayden Coja bankrupt business, and wrote off the retainder as uncolectible. Nov. 23. Reinstated the account of Harry Care, which had been witten off two years cathet as uncollectible. Recorded the receipt of $3,585 cash in fut payment Dec 31 Wrote off the following accounts us uncollectible (one entry): Cavey Co.59,480 Pogle Co $2,015; Lake Furniture, $7,240, Melinda Shryer, $2,045 Based on an analysis of the $135,500 of accounts receivable, it was estimated that 540,500 will be uncollectible, Joumaired the adjusting entry Required: 1. Record the January 1 credit balance of 546,200 Taccount presented below in requirement 2b for Alowance for Double Aeroun 2. a. Tomake the transactions an amount box does not require an entry leave it blank. Note. Por the December 51 adjusting entry, assume the $1,115,500 balance in account recevable reflects the adjustments made during the year Jan. 19. reinstate Accounts Receivable Arlene Gurley Allowance for Doubtful Accounts 2,200 2.200 2.200 Ian 19-collection Cash Accounts Receivable Arlene Gurley 2.200 Apr. 3 12,610 Allowance for Doubtful Accounts Accounts Receivable Premier GS Co. 12,610 July 16 7,910 Cash Allowance for Doubtful Accounts Accounts Receivable-Hayden Co. 14,690 22,600 3,585 Nov. 23-reinstate Accounts Receivable-Harry Carr Allowance for Doubtful Accounts 3.585 3.505 Nov. 23-collection Cash Accounts Receivable Harry Carr 3,585 21.580 Dec. 31'wnte off Allowance for Doubtful Accounts Accounts Receivable Cavey Co. V Accounts Receivable-Fogle Co. Accounts Receivable Lake Furniture 9.480 2,815 7,240 Accounts Receivable Melinda Shryer 2,085 43,695 x Dec 31-adjusting Bad Debt Expense Allowance for Doubtful Accounts 43,695 x Feedback Check My Work Set up T accounts Recal that under the allowance method, the entry to write off an account debits Allowance for Doubtful Accounts and credits A In such cases where an account receivable that has been written off is later collected, the account is reinstated by an entry tha 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 accounts and determine the new balances: Allowance for Doubtful Accounts Apr. 3 12,610 Jan. 1 Balance 46,200 July 16 14,690 Jan. 19 2,200 Dec. 31 21,580 Nov. 23 3,585 Dec. 31 Unadjusted Balance 4,805 X Dec. 31 Adjusting Entry 43,695 X Dec. 31 Adjusted Balance 48,500 Bad Debt Expense Dec 31 Adjusting Entry 13,695 x Food Oracky Work Set up accounts Recal that under the slowance method, the entry to write off an account debts Howance for Doubool Accounts and credits Accounts Receivable In such cases where an account recevable that has been waitten off is later colected, the account is reinstated by an entry that reverses the write-off entry. Then record the recept of cash payment for the account. The amount of bad debt expenses affected by the balance in the allowance account 3. Determine the expected et cerakoble value of the accounts receivable as of December 31 (alter at of the adjustments and the adjusting entry) 1,067,000 1. Assuming that instead of busing the provimin for uncollectible accounts on an analysis of receivables, the adjusting entry on December 31 had been based on an estimated expense of of 15 of the sales of $0,890,000 for the year determine the following: > Baddest expense for the year 34,450 bu Balance in the lowance account her the pastest of December 31 39,255X Expected netreskrble value of the countrivatleas of December 31 (after all of the adjustments and the desting entry) 1,076,245 X