I got stuck on the December 31 adjusting entry. Thank you for your help
Jan. 19. Apr. 3. ries Related to Uncollectible Accounts following transactions were completed by The Wild Trout Gallery during the current fiscal year ended December 31: Reinstated the account of Arlene Gurley, which had been written off in the preceding year as uncollectible. Journalized the receipt of $2,065 cash in full payment of Arlene's account. Wrote off the $11,830 balance owed by Premier GS Co., which is bankrupt. July 16. Received 45% of the $21,200 balance owed by Hayden Co., a bankrupt business, and wrote off the remainder as uncollectible. Reinstated the account of Harry Carr, which had been written off two years earlier as uncollectible. Recorded the receipt of $3,365 Nov. 23. cash in full payment. Wrote off the following accounts as uncollectible (one entry): Cavey Co.,$8,900; Fogle Co., $2,645; Lake Furniture, $6,795; Melinda Shryer, $1,920 Based on an analysis of the $1,048,800 of accounts receivable, it was estimated that $45,600 will be uncollectible. Journalized the adjusting entry. Dec. 31. Dec. 31. Required: 1. Record the January 1 credit balance of $43,400 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 $1,048,800 balance in accounts receivable reflects the adjustments made during the year. Jan. 19-reinstate Accounts Receivable-Arlene Gurley 2,065 Allowance for Doubtful Accounts 2,065 2,065 Jan. 19-collection Cash Accounts Receivable-Arlene Gurley 2,065 Apr. 3 11,830 Allowance for Doubtful Accounts Accounts Receivable-Premier GS Co. 11.830 July 16 9,540 Cash Allowance for Doubtful Accounts Accounts Receivable-Hayden Co. 11,660 21,200 Nov. 23-reinstate Accounts Receivable-Harry Carr 3,365 3,365 Nov. 23-reinstate Accounts Receivable-Harry Carr Allowance for Doubtful Accounts 3,365 3,365 Nov. 23-collection Cash Accounts Receivable-Harry Carr 3,365 20,260 8.900 Dec. 31-write-off Allowance for Doubtful Accounts Accounts Receivable-Cavey Co. Accounts Receivable-Fogle Co. Accounts Receivable-Lake Furniture Accounts Receivable-Melinda Shryer 2,645 6,795 1.920 Dec. 31-adjusting Bad Debt Expense Allowance for Doubtful Accounts 2. b. Post each entry that affects the following T accounts and determine the new balances: Allowance for Doubtful Accounts Jan. 1 Balance Dec. 31 Adjusted Balance Bad Debt Expense Feedback 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 hased on an estimated exnense of V of 1% of the sales of C6 480.00 for the vear determine the follnwinn: 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 Y2 of 1% of the sales of $6,480,000 for the year, determine the following: a. Bad debt expense for the year. b. 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)
