The following transactions were completed by Daws Company during the current fiscal year ended December 31: Received 30 % of the $18,900 balance owed by Kovar Co., a bankrupt business, and wrote off the Jan. 29 remainder as uncollectible. Reinstated the account of Spencer Clark, which had been written off in the preceding year as p. 18 uncollectible. Journalized the receipt of $7,265 cash in full payment of Clark's account. Wrote off the $6,410 balance owed by Iron Horse Co., which has no assets. Aug. 9 Reinstated the account of Vinyl C., which had been written off in the preceding year as uncollectible. Nov. 7 Journalized the receipt of $3,980 cash in full payment of the account. Wrote off the following accounts as uncollectible (one entry): Beth Connelly Inc., $7,090: DeVine Co. Dec. 31 $5,485; Moser Distributors, $9,415; Oceanic Optics, $1,190. Based on an analysis of the $1,774,000 of accounts receivable, it was estimated tha$35,480 will be Dec. 31 unoollectible. Jourmalized the adjusting entry Required: 1. Record the January 1 credit balance of $25,795 in a T account for Allowance for Doubttul Accounts. 2. A. Journalize the transactions. For the December 31 adjusting entry, assume the $1,774,000 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.ceceivable 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 4 of 1% of the sales of $18,660,000 for the year, determine the following: A Bad debt expense for the year B. Balance in the alowance account after the adjustment of December 31 C. Expected net realizable value of the accounts receivable as of December 31 Daws Company General Ledger REVENUE ASSETS 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 121 Accounts Receivable-Kovar Co. 122 Accounts Receivable-Spencer Clark EXPENSES 123 Accounts Receivable-Iron Horse Co. 510 Cost of Merchandise Sold 124 Accounts Receivable-Vinyl Co. 520 Sales Salaries Expense 125 Accounts Receivable-Beth Connelly Inc. 521 Advertising Expense 522 Depreciation Expense-Store Equipment 126 Accounts Receivable-DeVine Co. 523 Delivery Expense 127 Accounts Receivable-Moser Distributors 128 Accounts Receivable-Oceanic Optics 524 Repairs Expense 129 Allowance for Doubtful Accounts 529 Selling Expenses 530 Office Salaries Expense 131 Interest Receivable 531 Rent Expense 132 Notes Receivable 141 Merchandise Inventory 532 Depreciation Expense-Office Equipment 145 Office Supplies 533 Insurance Expense 146 Store Supplies 534 Office Supplies Expense 151 Prepaid Insurance 535 Store Supplies Expense 181 Land 536 Credit Card Expense 191 Store Equipment 537 Cash Short and Over 192 Accumulated Depreciation-Store Equipment 538 Bad Debt Expense 193 Office Equipment 539 Miscellaneous Expense 194 Accumulated Depreciation-Office Equipment 710 Interest Expense 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 T Accounts 1. Record the January 1 credit balance of $25,795 in a Taccount for Allowance for Doubtul Accounts 2. Post each entry that affects the following selected Taccounts and determine the new balances: Allowance for Doubtful Accounts and B. Bad Debt Expense Allowance for Doubtful Accounts Jan.t Balance Dec. 31 Adj. Balance Bad Debt Expense 2 A. Journalize the transactions. For the December 31 adjusting entry, assume the $1,774,000 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 PAGE 10 JOURNAL ACCOUNTING EQUATION POST. REF DATE DESCRIPTION DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 10 11 12 4 14 17 18 19 20 Final Questions 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 1% of the sales of $18,660,000 for the year, determine the following A. Bad debt expense for the year. s 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