PR 8-1B Entries related to uncollectible accounts ObJ. 4 The following transactions were completed by The 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 as uncollectible. Journalized the receipt of $2,660 cash in full payment of Arlenes account. Apr. 3. Wrote off the $12,750 balance owed by Premier GS Co., which is bankrupt. July 16. Received 25% of the $22,000 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 receipt of $4,000 cash in full payment. Dec. 31. Wrote off the following accounts as uncollectible (compound entry): Cavey Co., $3,300; Fogle Co., $8,100; Lake Furniture, $11,400; Melinda Shryer, $1,200. 31. Based on an analysis of the $2,350,000 of accounts receivable, it was estimated that $60,000 will be uncollectible. Journalized the adjusting entry. Instructions 1. Record the January 1 credit balance of $50,000 in a T account for Allowance for Doubtful Accounts.

2. Journalize the transactions. Post each entry that affects the following T accounts and

determine the new balances: Allowance for Doubtful Accounts Bad Debt Expense 3. Determine the expected net realizable value of the accounts receivable as of December 31.

Warren, Carl S.; Reeve, James M.; Duchac, Jonathan (2015-01-06). Financial & Managerial Accounting (Page 403). South-Western College Pub. Kindle Edition.

Warren, Carl S.; Reeve, James M.; Duchac, Jonathan (2015-01-06). Financial & Managerial Accounting (Page

402). South-Western College Pub. Kindle Edition.