Instructions Uncollectible Accounts --Allowance Method 1. Open the three selected general ledger accounts. 2. Enter the transactions and the adjusting and closing entries in a general journal (page 6). After each entry, post only to the three accounts named If an amount box does not require an entry, leave it blank. 3. Determine the net realizable value as of December 31. Pyle Nurseries used the allowance method to record the following transactions, adjusting entries, and closing entries during the year ended December 31, 20- Feb. 9 Received 60% of the $4,000 balance owed by Wiley's Waterworks, a bankrupt business, and wrote off the remainder as uncollectible. Reinstated the account of Amanda Akin, which had been written off in the preceding year, and received $2,100 cash in full settlement. May Reinse Reinstated the account of Amanda Akin, which had been written off in the preceding year, and received $2,100 cash in full settlement. 28 Aug. Wrote off the $5,700 balance owed by JoJo Xu as uncollectible. 16 Oct. 5 Reinstated the account of Tomi Kennedy which had been written off in the preceding year, and received $3,100 cash in full settlement Dec. Wrote off the following accounts as uncollectible, in compound entry form: Jacobs & Wilson, $10,900; Specialty Landscapes, $15,360; 28 Kiana Hoyer, $13,170. . Based on an aging analysis of the $965,000 of accounts receivable, it was estimated that $50,800 will be uncollectible. Made the adjusting entry. 31 Made the entry to close the appropriate account to Income Summary. Selected accounts and beginning balances on January 1, 20-, are as follows: 122.1 Allowance for Doubtful Accounts $43,000 credit 313 Income Summary 31 Made the entry to close the appropriate account to Income Summary. Selected accounts and beginning balances on January 1, 20-, are as follows: 122.1 Allowance for Doubtful Accounts $43,000 credit 313 Income Summary 532 Bad Debt Expense General Journal 1. Open the three selected general ledger accounts. 2. Enter the transactions and the adjusting and closing entries in a general journal (page 6). After each entry, post only to the three accounts named. If an amount box does not require an entry, leave it blank DATE ACCOUNT TITLE DOC. POST. NO. REF. DEBIT Page: 6 CREDIT 1 20- Feb. 9 Cash 2,400 Accounts Receivable/Wiley's Waterworks 2.400 Collection on account 5 Feb. 9 122.1 Allowance for Doubtful Accounts Accounts Receivable/Wiley's Waterworks Wrote off uncollectible account 19 May 28 ID 10 Reinstated account receivable 13 May 28 Collection on account 17 Aug. 16 Wrote off uncollectible account General Journal 21 Oct. 5 Reinstated account receivable Oct. 5 Collection on account Dec. 28 General Journal Wrote off uncollectible accounts 35 Dec. 31 Adjusting entry 39 Dec. 31 Closing entry Net Realizable Value 3. Determine the net realizable value as of December 31
