The following transactions were completed by Emmanuel Company during the current fiscal year ended December 31: Jan. 29 Recelved 40% of the $17,000 balance owed by Jankovich Co, a bankrupt business, and wrote off the remainder as uncollectble. Apr. 18 Reinstated the account of Vince Karm, which had been written off in the preceding year as uncollectibie. Journalized the receipt of \$7, 560 cash in full payment of Karm's account. Aug. Wrote off the $22,380 balance owed by Golden Stallion Co., Which has no assets. Nov. 7. Reinstated the account of Wiley Co., which had been written off in the preceding year as uncoliectible. Journalized the receipt of $13,220 cash in full payment of the account. Dec. 31 Wrote off the following accounts as uncollectibie (one entry); Clalre Moon inc., 522,860 ; Jet Set Co.. \$15,320; Randall Distributors, \$41,460; Harmonic Audio, $18,890. 31 Based on an analysis of the $2,740,000 of accounts recelvable, It was estimated that $113,330 will be uncollectible. Journalized the adjusting entry. Required: 1. Record the January 1 creait balence of $102,380 in a T account for Allowance for Doubuful Accounts." 2. a. Joumalize the transactions. For the December 31 ad,uating entry, assume the $2,740,000 balance in accounts receivabie refiects the asjustments made during the year. Refer to the chart of accocnta for the exact wording of the account tinies. CMOW joumals do nof use ines for joumal explanations. Every ine on a journal page is used for debit or credit entres. CNOW joumals wil automaticaliy indent a credit entry when a credt amount is entered. b. Post each entry that affects the following selected T accounts and determine the new balances Alowance for Doustul Accounts and Bad Debt Expense. * 3. Determine the expected net reakzable value of the accounts recsivabie as of Dectmber 31 fafter all of the adjustments and the acjusting entry). 4. Assuming that instead of Basing the provislon for uncolvetible accounts on an analysia of recelvabies the achusting entry on December 31 had been based on an estimated expense of X of t\$s of the sales of $24,900,000 for the year, determine the following: a. Aad debt expense for the year. b. Balence in the allowance account after the adjustment of December 31 . c. Expected net reaczebie value of the accounts recelvabie as of December 31 . "The ending balance iabel is provided on the ieff aide of the T account even when the ending balance is a crecit. The 1. Record the sanuary r credit balance of 5102,3de in a T aceount for Alowance for Dovbut Accounts * 26. Post each entry that affects the folowing selected T accounts and determine the new balances. Allowance for Doubsul Aosounts and Bad Debt Lipense, "The ensing baiance label it provided on the left side of the T account even when the ending balance is a credt. The unused celf an the balance line ahouly be ieft biank. account tibes. CrVWWjoumais do not isse ines for joumar explanations. Every ine on a joumal page is used for debet or Instructions T Acoounts Allowance for Doubtful Accounts account titles. CNOW joumsis do not use ilines for joumal explanasions. Every ine on a joumal page is used for debit or 2a. Jourmalze the transactions. For the December 31 aduabing entry, assame the 52,740,000 balance in accounts receivabie iefocts the Refer to the chart of accounts for the exact wording of the account tities. CNOW journals do not use lines for journal explanatians. Every debit or crecir entries. CNOW journals will automatically indent a credir entry when a creats amount is entered. credit entries. CNOW joumais ww automatically indent a credt entry when a credit amount is entered 3. Determine the expected oet realzable value of the accounts receivable as of December 31 (afier all of the adfustments and the adpusting entry. 4. Assuming that instead of basing the provision for uncollectible accounfs on an analysis of receivables the adjusting entry on December 31 had been based on an estimated expense of 15 of 1$5 of the sales of $24,900,000 for the year, detemine the foilowing for the year. b. Balance in the allowance account after the atjustment of December 31
