Practice Problem #1: Journalize the following transactions assuming the allowance method is used to account for...

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Practice Problem #1: Journalize the following transactions assuming the allowance method is used to account for uncollectible receivables. 05/14 06/20 07/27 12/31 Received 75% of the $20,000 balance owed by Webb Co., a bankrupt business. Wrote off remainder as uncollectible. Reinstated the account of Zorn Co., which had been written off in the preceding year as uncollectible. Received $5,225 cash as full payment of Zorn's account. Wrote off the $2,500 balance owed by Schmich, Inc. which had no assets. Based on an analysis of Accounts Receivable, it is determined that $11,500 will become uncollectible. The balance in Allowance for Doubtful Accounts on December 31 prior to adjustment is $200 credit. Determine the following: a) The balance in Allowance for Doubtful Accounts after adjustment. Practice Problem #1: Journalize the following transactions assuming the allowance method is used to account for uncollectible receivables. 05/14 06/20 07/27 12/31 Received 75% of the $20,000 balance owed by Webb Co., a bankrupt business. Wrote off remainder as uncollectible. Reinstated the account of Zorn Co., which had been written off in the preceding year as uncollectible. Received $5,225 cash as full payment of Zorn's account. Wrote off the $2,500 balance owed by Schmich, Inc. which had no assets. Based on an analysis of Accounts Receivable, it is determined that $11,500 will become uncollectible. The balance in Allowance for Doubtful Accounts on December 31 prior to adjustment is $200 credit. Determine the following: a) The balance in Allowance for Doubtful Accounts after adjustment.