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 $2,640 cash in tur payment of Arlene's account. Wrote of the $15,130 belance owed by Premier GS Co., which is bankrupt. July 16, Received 25% of the 527,100 balance owed by Hayden Co., a bankrupt business, and wrote of the remainder as uncollectible Reinstated the account of Harry Cars, which had been written of two years earlier as uncollectible. Recorded the receipt of $4,305 cash in full payment Dec. 31. Wrote of the following accounts as uncollectible (one entry): Cavey Co.,511,380; Fogle Co., 53,380;Lake Furniture, 59,685; Melinda Sheryer, $2.455 Dec. 31. Based on an analysis of the $1,338,600 of accounts receivable, it was estimated that $58,200 will be uncollectible. Journalized the adjusting entry. Required: 1. Record the January 1 credit balance of $55,400 in a Toccount presented below in requirement 2 for Allowance for Doubtful Accounts. 2. a Journalce the transactions for compound transaction, if an amount box does not require an entry, leave it blank. Note: For the December 31 adjusting entry, assume the $1,338,600 balance in accounts receivable reflects the adjustments made during the year. Jan 19 estate Jan 19-coction Check My Work 3 more Check My Work uses remaining Next 9 HW Book Showie 01 ALGO 2 ALGO 3 ALGO 4 ALGO SALGO Nov. 23-reinstate Nov. 23-collection Dec 31-write of Dec. 31-acusting Check My Work 3 more Check My Work uses remaining acer Shoe Calcun 2. b. Post each entry that afects the following T accounts and determine the new balances: Allowance for Doubtful Account Dan Balance Dec. 31 Adjusted Balance Bad Debt Expense 3. Determine the expected net realizable 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 58,260,000 for the year, determine the following: Bad debt for the year Balance in the allowance account after the adjustment of December 31 Check My Work 3 more Check My Work uses remaining Next Dec. 31 Adjusted Balance Bad Dobt Expense 3. Determine the expected net realitzable 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 1 of 1% of the sales of $8,260,000 for the year, determine the following: a. Bad debt expense for the year. D. 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) Check My Work 3 more Check My Work uses remaining
