Jan. 19 Accounts Receivable-Arlene Gurley 2,670 X Allowance for Doubtful Accounts 2,670 Cash Jan. 19 2,670 X Accounts Receivable-Arlene Gurley 2,670 x Apr. 3 Allowance for Doubtful Accounts 15,300 X Accounts Receivable-Premier GS Co. 15.300 X July 16 Cash 10,960 x Allowance for Doubtful Accounts 16,440 Accounts Receivable-Hayden Co. 27,400 x Nov. 23 Accounts Receivable-Harry Carr 4,350 X Allowance for Doubtful Accounts 4,350 Nov. 23 Cash 4,350 X Accounts Receivable-Harry Carr Dec. 31 Allowance for Doubtful Accounts 26,200 x Accounts Receivable-Cavey Co. 11,510 x Accounts Receivable-Fogle Co. 3,420 X Dec. 31 Allowance for Doubtful Accounts 26,200 Accounts Receivable-Cavey Co. 11,510 Accounts Receivable-Fogle Co. 3,420 Accounts Receivable-Lake Furniture 8,785 Accounts Receivable-Melinda Shryer 2,485 Bad Debt Expense Dec. 31 53,720 X Allowance for Doubtful Accounts 53,720 X 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 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 1/2 of 1% of the sales of $6,380,000 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). Allowance method entries The folowing transactions were completed by 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 collectible Journalized the recept of 52,040 cash in full payment of Arlenes account Apr. 3. Wrote of the 511,690 balance owed by Premier GS Coy which is bankrupt Buy 16. Received 40% of the $21,000 balance owed by Hayden Coua 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 $3,325 cash in full payment. Dec Wrote of the following accounts as uncollectible compound anty) Cavey Co. $8,790 ; Pogle co $2,610 : Lake Furniture, $ 6,710 : Meinda Shiryer, $1,895 31. Dec Based on an analysis of the sp.032,700 of accounts receivable, it was estimated that $44,900 will be uncollectible. Soumalized the adjusting entry Required: 1. Record the January 1 creat balance of 142.800 in a Taccount presented below in requirement 2b for Allowance for Doubtful Accounts 2.2. Joumalize the transactions. Il an amount box does not require an entry leave it blank. Notes for the December 31 adjusting entry, assume the $1,032,700 balance in accounts receivable reflects the adjustments made during the year
