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PR 9-1A Entries Related to Uncollectible Accounts OBJ. 4 The following transactions were completed by Emmanuel Company during the current fiscal year ended December 31:

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PR 9-1A Entries Related to Uncollectible Accounts OBJ. 4 The following transactions were completed by Emmanuel Company during the current fiscal year ended December 31: Jan. 29. Received 40% of the $17,000 balance owed by Jankovich Co., a bankrupt business, and wrote off the remainder as uncollectible. Apr. 18. Reinstated the account of Vince Karm, which had been written off in the preceding year as uncollectible. Journalized the receipt of $7,560 cash in full payment of Karm's account. Aug. 9. Wrote off the $22,380 balance owed by Golden Stallion Co., which has no assets. Nov. 7. Reinstated the account of Wiley Co., which had been written off in the preceding year as uncollectible. Journalized the receipt of $13,220 cash in full payment of the account. Dec. 31. Wrote off the following accounts as uncollectible (one entry): Claire Moon Inc., $22,860; Jet Set Co., $15,320; Randall Distributors, $41,460; Harmonic Audio, $18,890 31. Based on an analysis of the $2,740,000 of accounts receivable, it was estimated that $113,330 will be uncollectible. Journalized the adjusting entry Instructions 1. Record the January 1 credit balance of $102,380 in a T account for Allowance for Doubtful Accounts. 2. Journalize the transactions. Post each entry that affects the following selected 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. Answer 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 of 1% of the sales of $24,900,000 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

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