The following transactions were completed by Emmanuel Company during the current fiscal year ended December 31: Jan 29 Apr. 18 Aug 9 Nov. 7 Received 35% of the $18.100 balance owed by Jankovich Co., a bankrupt business, and wrote off the remainder as uncollectible. Reinstated the account of Vince Karm, which had been written off in the preceding year as uncollectible. Journalized the receipt of $7,300 cash in full payment of Karm's account. Wrote off the 56,350 balance owed by Golden Stallion Co., which has no assets. Reinstated the account of Wiley 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. Wrote off the following accounts as uncollectible (one entry): Claire Moon Inc., 57,105: Jet Set Co., S5,435, Randall Distributors, 99,390: Harmonic Audio. $1.075. Based on an analysis of the $1,790,000 of accounts receivable, it was estimated that S35,920 will be uncollectible. Journalized the adjusting entry Dec 31 31 Required: 1. Record the January 1 credit balance of 526,080 in a Taccount for Allowance for Doubtful Accounts. * 2. 3. Journalize the transactions. For the December 31 adjusting entry, assume the 51,796,000 balance in accounts receivable reflects the adjustments made during the year. Refer to the chart of accounts for the exact wording of the account titles CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered b. Post each entry that affects the following selected T accounts 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 1% of the sales of 518,260,000 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. *The ending balance label is provided on the left side of the Taccount even when the ending balance is a credit. The unused cell on the balance line should be left blank TAccounts 1. Record the January 1 credit balance of 526.080 in a T account for Allowance for Doubtful Accounts. * 2b. Post each entry that affects the following selected accounts and determine the new balances: Allowance for Doubtful Accounts and Bed Debt Expense * *The ending balance label is provided on the left side of the Taccount even when the ending balance is a credit. The unused cell on the balance line should be left blank Allowance for Doubtful Accounts Jan. 1 Balance Dec 31 Adj. Balance Bad Debt Expense Journal 2a. Journalize the transactions. For the December 31 adjusting entry, assume the 51,796.000 balance in accounts receivable reflects the adjustments made during the year. Refer to the chart of accounts for the exact wording of the account titles. CNOW joumals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indenta credit entry when a credit amount is entered JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST.RO DEBIT CREDIT ASSETS LIABILITIES EQUITY 3 5 10 11 18 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). S 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 $18.260,000 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. 5 c. Expected net realizable value of the accounts receivable as of December 31. 5
