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The following transactions were completed by The Spencer Gallery during the current fiscal year ended December 31: Mar. 15. Reinstated the account of Brad Atwell,

The following transactions were completed by The Spencer Gallery during the current fiscal year ended December 31:

Mar. 15. Reinstated the account of Brad Atwell, which had been written off in the preceding year as uncollectible. Journalized the receipt of $2,035 cash in full payment of Brads account.
May 20. Wrote off the $11,660 balance owed by Glory Rigging Co., which is bankrupt.
Aug. 13. Received 35% of the $20,900 balance owed by Coastal Co., a bankrupt business, and wrote off the remainder as uncollectible.
Sept. 2. Reinstated the account of Lorie Kidd, which had been written off two years earlier as uncollectible. Recorded the receipt of $3,315 cash in full payment.
Dec. 31. Wrote off the following accounts as uncollectible (compound entry): Kimbro Co., $8,770; McHale Co., $2,605; Summit Furniture, $6,695; Wes Riggs, $1,895.
Dec. 31. Based on an analysis of the $1,030,400 of accounts receivable, it was estimated that $44,800 will be uncollectible. Journalized the adjusting entry.

Required:

1. Record the January 1 credit balance of $42,700 in a T account (below) for Allowance for Doubtful Accounts.

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2. a.Journalize the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. Note: For the December 31 adjusting entry, assume the $1,030,400 balance in accounts receivable reflects the adjustments made during the year.

Mar. 15-reinstate

Mar. 15-collection

May 20

Aug. 13

Sept. 2-reinstate

Sept. 2-collection

Dec. 31-write-off

Dec. 31-adjusting

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