Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help! Allowance method entries The following transactions were completed by Wid Trout Gallery during the current fiscal year ended December 31 : Jan. 19.

please help! image text in transcribed
image text in transcribed
image text in transcribed
Allowance method entries The following transactions were completed by Wid 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 $2,470 cash in full payment account. Apr. 3. Wroke off the $14,150 balance owed by Premier GS Co., which is bankrupt. July 16. Received 30% of the $25,400 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 recelpt of $4,025 cash in full payment. Dec. Wrote off the following accounts as uncollectible (compound entry): Cavey Co., $10,645; Fogle Co, $3,160; Lake Furniture, $8,125; Melinda Saryer, $2,295. 31. Dec. Based on an analysis of the $1,253,500 of accounts recelvable, it was estimated that $54,500 will be uncollectble. Journalized the adjusting entry. 31. Required! 1. Record the January 1 credit balance of $51,900 in a T account presented below in requirement 20 for Allowance for Doubtful Accounts. 2. a. Joumalize the transoctions, If an amount box does not require an entry, leave it biank. Note: For the December 31 adjusting entry, assume the 51,253,500 balance 2. A. 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 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 recelvables, the adjusting entry on December 3t had been based on an estimated expense of k of 1% of the sales of $7,740,000 for the yeac, determine the following: a. Alad detat expense for the year b. Balance in the allowance account after the odjustment of Det mber 31. C. Expected net realizable value of the accounts recelvabie as of December 31 (after al of the adjustments and the adjusting entry)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions