Ine following transactions were completed by Wid irout Gallery during the current fiscal year ended December 31 : January 19. Reinstated the account of Arlene Gurley, which had been written off in the preceding year as uncollectible. Journalized the receipt of $2,660 cash in full payment of Arlene's account. April 3. Wrote off the $12,750 balance owed by Premier 65 Co., which is bankrypt. July 16. Received 25% of the $22,000 balance owed by Hayden Co., a bankrupt business, and wrote off the remainder as uncollectible. November 23. Reinstated the account of Harry Carr, which had been witten off two years earlier as uncollectible. Recorded the receipt of $4,000 cash in full payment. December 31. Wrote off the following accounts as uncollectible (compound entry): Cavey Co., $3,300; Fogle Ca., $8,100; Lake Furniture, $11,400; Melinda Shryer, $1,200. December 31. Based on an analysts of the $2,350,000 of accounts recelvable, it was estimated that $60,000 will be uncollectible. 30 urnalized the adjusting entry. Required: 1. Record the January 1 credit balance of 350,000 in a T account presented below in requirement 2b for allowanco for ooubtrul cccounts. 2. a. Joumalize the transactions. If an amount box does not require an entry, leave it blank. Notes For the December 31 adjusting entry, assume the 52,350,000 bolance in accounts recelvable reflects the adjustments made durino the veat. 1. Record the January 1 credit batance of $50,000 in a T account presented below in requirement 2b for Alowance for Doubtful Accounts. 2. a. Joumalize the transactions. If an amount box does not require an entry, leave it blank, Note: For the December 31 adjusting entry, assume the $2,350,000 balance in accounts receivable reflects the adjustments made during the year: 2. b. Post each entry that affects the following T accounts and determine the new balances: 3. Determine the expected net realizable value of the accounts recelvable 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 rectivables, the adjusting entry on December 31 had been based on an estimated expense of 1/2 of 1% of the sales of 315,800,000 for the year, determine the following: a. Bad debt expenve 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 adjustinents and the adjusting entry)
