The following transactions were completed by Daws Company during the current fiscal year ended December 31:

Jan. 29

Received 35% of the $18,100 balance owed by Kovar Co., a bankrupt business, and wrote off the remainder as uncollectible.

Apr. 18

Reinstated the account of Spencer Clark, which had been written off in the preceding year as uncollectible. Journalized the receipt of $7,300 cash in full payment of Clarks account.

Aug. 9

Wrote off the $6,350 balance owed by Iron Horse Co., which has no assets.

Nov. 7

Reinstated the account of Vinyl Co., which had been written off in the preceding year as uncollectible. Journalized the receipt of $3,865 cash in full payment of the account.

Dec. 31

Wrote off the following accounts as uncollectible (one entry): Beth Connelly Inc., $7,105; DeVine Co., $5,435; Moser Distributors, $9,390; Oceanic Optics, $1,075.

Dec. 31

Based on an analysis of the $1,796,000 of accounts receivable, it was estimated that $35,920 will be uncollectible. Journalized the adjusting entry.

Required:

1.

Record the January 1 credit balance of $26,080 in a T account for Allowance for Doubtful Accounts.

2.

A.

Journalize the transactions. For the December 31 adjusting entry, assume the $1,796,000 balance in accounts receivable reflects the adjustments made during the year. Refer to the chart of accounts for a listing of the account titles the company uses.

Expected net realizable value of the accounts receivable as of December 31.

CHART OF ACCOUNTS

Daws Company

General Ledger

	ASSETS
110	Cash
111	Petty Cash
121	Accounts Receivable-Kovar Co.
122	Accounts Receivable-Spencer Clark
123	Accounts Receivable-Iron Horse Co.
124	Accounts Receivable-Vinyl Co.
125	Accounts Receivable-Beth Connelly Inc.
126	Accounts Receivable-DeVine Co.
127	Accounts Receivable-Moser Distributors
128	Accounts Receivable-Oceanic Optics
129	Allowance for Doubtful Accounts
131	Interest Receivable
132	Notes Receivable
141	Merchandise Inventory
145	Office Supplies
146	Store Supplies
151	Prepaid Insurance
181	Land
191	Store Equipment
192	Accumulated Depreciation-Store Equipment
193	Office Equipment
194	Accumulated Depreciation-Office Equipment

	LIABILITIES
210	Accounts Payable
211	Salaries Payable
213	Sales Tax Payable
214	Interest Payable
215	Notes Payable

	EQUITY
310	Daws, Capital
311	Daws, Drawing
312	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise Sold
520	Sales Salaries Expense
521	Advertising Expense
522	Depreciation Expense-Store Equipment
523	Delivery Expense
524	Repairs Expense
529	Selling Expenses
530	Office Salaries Expense
531	Rent Expense
532	Depreciation Expense-Office Equipment
533	Insurance Expense
534	Office Supplies Expense
535	Store Supplies Expense
536	Credit Card Expense
537	Cash Short and Over
538	Bad Debt Expense
539	Miscellaneous Expense
710	Interest Expense

Journal PETU COM puv.vv Accounts Receivable-Spencer Clark 7,300.00 Aug. 9 Allowance for Doubtful Accounts 6,350.00 Accounts Receivable-Iron Horse Co. 6,350.00 3,865.00 Nov. 7 Cash Accounts Receivable-Vinyl Co. Dec. 31 Allowance for Doubtful Accounts 3,865.00 23,005.00 Accounts Receivable-Beth Connelly Inc. 7,105.00 Accounts Receivable-DeVine Co. 5,435.00 Accounts Receivable-Moser Distributors 9,390.00 1,075.00 Accounts Receivable-Oceanic Optics Dec. 31 Bad Debt Expense 39,795.00 Allowance for Doubtful Accounts 39,795.00 11,765.00 Bad Debt Expense 35,920.00 Bad Debt Expense 62,000.00 Bad Debt Expense 77,220.00