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

Jan. 19 Reinstated the account of Arlene Gurley, which had been written off in the preceding year as uncollectible. Journalized the receipt of $2,045 cash in full payment of Arlenes account.

Apr. 3 Wrote off the $11,720 balance owed by Premier GS Co., which is bankrupt.

July 16 Received 25% of the $21,000 balance owed by Hayden Co., a bankrupt business, and wrote off the remainder as uncollectible.

Nov. 23 Reinstated the account of Harry Carr, which had been written off two years earlier as uncollectible. Recorded the receipt of $3,335 cash in full payment.

Dec. 31 Wrote off the following accounts as uncollectible (one entry): Cavey Co., $8,815; Fogle Co., $2,620; Lake Furniture, $6,730; Melinda Shryer, $1,900.

31 Based on an analysis of the $1,035,000 of accounts receivable, it was estimated that $45,000 will be uncollectible. Journalized the adjusting entry.

Required:

1. Record the January 1 credit balance of $42,900 in a T account presented below in requirement 2b for Allowance for Doubtful Accounts.

Question Content Area

2. a. Journalize the transactions. If an amount box does not require an entry, leave it blank. Note: For the December 31 adjusting entry, assume the $1,035,000 balance in accounts receivable reflects the adjustments made during the year.

2. b. Post each entry that affects the following T accounts and determine the new balances:

Allowance for Doubtful Accounts
Apr. 3	11,720	Jan. 1 Balance	42900
July 16	15750	Jan. 19	2045
Dec. 31	20065	Nov. 23	3335
		Dec. 31 Unadjusted Balance	fill in the blank
		Dec. 31 Adjusting Entry	fill in the blank
		Dec. 31 Adjusted Balance	fill in the blank

Bad Debt Expense
Dec. 31 Adjusting Entry	fill in the blank

Balance in the allowance account after the adjustment of December 31. $________________ (fill in the blank)

c. Expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry). $________________(fill in the blank)