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 $2,790 cash in full payment of Arlenes account.
Apr.	3	Wrote off the $15,990 balance owed by Premier GS Co., which is bankrupt.
July	16	Received 45% of the $28,700 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 $4,550 cash in full payment.
Dec.	31	Wrote off the following accounts as uncollectible (one entry): Cavey Co., $12,025; Fogle Co., $3,570; Lake Furniture, $9,180; Melinda Shryer, $2,595.
	31	Based on an analysis of the $1,414,500 of accounts receivable, it was estimated that $61,500 will be uncollectible. Journalized the adjusting entry.

Required:

1. Record the January 1 credit balance of $58,600 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 $1,414,500 balance in accounts receivable reflects the adjustments made during the year.

Jan. 19-reinstate		fill in the blank 62f507027054ff4_2	fill in the blank 62f507027054ff4_3
		fill in the blank 62f507027054ff4_5	fill in the blank 62f507027054ff4_6
Jan. 19-collection		fill in the blank 62f507027054ff4_8	fill in the blank 62f507027054ff4_9
		fill in the blank 62f507027054ff4_11	fill in the blank 62f507027054ff4_12
Apr. 3		fill in the blank 62f507027054ff4_14	fill in the blank 62f507027054ff4_15
		fill in the blank 62f507027054ff4_17	fill in the blank 62f507027054ff4_18
July 16		fill in the blank 62f507027054ff4_20	fill in the blank 62f507027054ff4_21
		fill in the blank 62f507027054ff4_23	fill in the blank 62f507027054ff4_24
		fill in the blank 62f507027054ff4_26	fill in the blank 62f507027054ff4_27
Nov. 23-reinstate		fill in the blank 62f507027054ff4_29	fill in the blank 62f507027054ff4_30
		fill in the blank 62f507027054ff4_32	fill in the blank 62f507027054ff4_33
Nov. 23-collection		fill in the blank 62f507027054ff4_35	fill in the blank 62f507027054ff4_36
		fill in the blank 62f507027054ff4_38	fill in the blank 62f507027054ff4_39
Dec. 31-write-off		fill in the blank 62f507027054ff4_41	fill in the blank 62f507027054ff4_42
		fill in the blank 62f507027054ff4_44	fill in the blank 62f507027054ff4_45
		fill in the blank 62f507027054ff4_47	fill in the blank 62f507027054ff4_48
		fill in the blank 62f507027054ff4_50	fill in the blank 62f507027054ff4_51
		fill in the blank 62f507027054ff4_53	fill in the blank 62f507027054ff4_54
Dec. 31-adjusting		fill in the blank 62f507027054ff4_56	fill in the blank 62f507027054ff4_57
		fill in the blank 62f507027054ff4_59	fill in the blank 62f507027054ff4_60

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

Allowance for Doubtful Accounts
	fill in the blank fbb1d800305a027_2	Jan. 1 Balance	fill in the blank fbb1d800305a027_3
	fill in the blank fbb1d800305a027_5		fill in the blank fbb1d800305a027_7
	fill in the blank fbb1d800305a027_9		fill in the blank fbb1d800305a027_11
			fill in the blank fbb1d800305a027_13
			fill in the blank fbb1d800305a027_15
		Dec. 31 Adjusted Balance	fill in the blank fbb1d800305a027_16

Bad Debt Expense
	fill in the blank fbb1d800305a027_18

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 d895d708e047020_1

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 $8,730,000 for the year, determine the following:

a. Bad debt expense for the year. $fill in the blank d895d708e047020_2

b. Balance in the allowance account after the adjustment of December 31. $fill in the blank d895d708e047020_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 d895d708e047020_4