The following transactions were completed by Daws Company during the current fiscal year ended December 31: Jan. 29 Received 40% of the $17,000 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 $7,405 cash in full payment of Clark's account Aug. 9 Wrote off the $6,460 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 $3,940 cash in full payment of the account. Dec. 31 Wrote off the following accounts as uncollectible (one entry): Beth Connelly Inc., $7,095; DeVine Co., $5,540; Moser Distributors, $9,495; Oceanic Optics, $1,035 Based on an analysis of the $1,782,000 of accounts receivable, it was estimated that $35,640 will be Dec. 31 uncollectible. Journalized the adjusting entry Required: 1. Record the January 1 credit balance of $25,615 in a Taccount for Allowance for Doubtful Accounts. 2. A. Journalize the transactions. For the December 31 adjusting entry, assume the $1,782,000 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. B. Post each entry that affects the following selected Taccounts and determine the new balances: Allowance for Doubtful Accounts and Bad Debt Expense. 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 receivables the adjusting entry on December 31 had been based on an estimated expense of of 16% of the sales of $17,760,000 for the year, determine the following: A. Bad debt expense for the year. Balance in llowance account after the adjustment of Decemb 31. C. Expected net realizable value of the accounts receivable as of December 31. Chart of Accounts General Ledger ASSETS REVENUE 110 Cash 410 Sales 610 Interest Revenue 111 Petty Cash 121 Accounts Receivable-Kovar Co EXPENSES 122 Accounts Receivable-Spencer Clark 510 Cost of Merchandise Sold 123 Accounts Receivable-Iron Horse Co. 520 Sales Salaries Expense 124 Accounts Receivable-Vinyl Co. 521 Advertising Expense 125 Accounts Receivable-Beth Connelly Inc. 522 Depreciation Expense-Store Equipment 126 Accounts Receivable-DeVine Co. 523 Delivery Expense 127 Accounts Receivable-Moser Distributors 524 Repairs Expense 128 Accounts Receivable-Oceanic Optics 129 Allowance for Doubtful Accounts 529 Selling Expenses 530 Office Salaries Expense 131 Interest Receivable 531 Rent Expense 132 Notes Receivable 532 Depreciation Expense-Office Equipment 141 Merchandise Inventory 533 Insurance Expense 145 Office Supplies 534 Office Supplies Expense 146 Store Supplies 535 Store Supplies Expense 151 Prepaid Insurance 536 Credit Card Expense 181 Land 537 Cash Short and Over 191 Store Equipment 538 Bad Debt Expense 192 Accumulated Depreciation-Store Equipment 539 Miscellaneous Expense 193 Office Equipment 710 Interest Expense 194 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 211 Salaries Pavable. Shaded cells have feedback XJournal Shaded cells have feedbad T Accounts Record the January 1 credit balance of $25,615 ina Taccount for Alowance for Doubtf A 1. 2 A. Journalize the transactions. For the December 31 adjusting entry, assume $1.782.000 balance in accounts receivable refects the adlustments made during the 2. Post each entry that affects the folliowing selected Taccounts and determine the new b year. Refer to the chart of accounts for a listing of the account titles the company uses. Accounts and Bad Debt Expense .. Question not attemp ted. Allowance for Doubtful Accounts PAGE 10 Score: 0/249 ACCOUNTING EQUATION JOURNAL Jan. 29 17,000XJan. 1 Balance 6,460 Apr. 18 DATE CREDIT UABIUTIES Aug. 9 DESCRIPTION POST REF DEBIT ASSETS EQUITY Nov. 2 Dec. 31 Dec. 31 Adjusting Entry Dec 31 Ad, Balance Dec. Unadlusted Balance Bad Debt Expense Dec. 31 Adjusting Entry Feedback Check My Work 11 Set up T accounts 131 11 14 1T Shaded cells have feedback Final Questions . Determine the expected net realizable yalue of the accounts receivable as of December 31 (ater all of the adjustments and the adjusting entry). Points 0/1 Feedback Y Check My Work Remember that net realizable value is the amount that is expected to be collected or realized