The following transactions were completed by 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 $2,660 cash in full payment of Arlene's account.
Apr. 3.	Wrote off the $12,750 balance owed by Premier GS Co., which is bankrupt.
July 16.	Received 25% of the $22,000 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 $4,000 cash in full payment.
Dec. 31.	Wrote off the following accounts as uncollectible (compound entry): Cavey Co., $3,300; Fogle Co., $8,100; Lake Furniture, $11,400; Melinda Shryer, $1,200.
Dec. 31.	Based on an analysis of the $2,350,000 of accounts receivable, it was estimated that $60,000 will be uncollectible. Journalized the adjusting entry.

Required:

1. Record the January 1 credit balance of $50,000 in a T account presented below in requirement 2b for Allowance for Doubtful Accounts.

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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 $2,350,000 balance in accounts receivable reflects the adjustments made during the year.

Jan. 19	Accounts Receivable-Arlene GurleyAllowance for Doubtful AccountsBad Debt ExpenseDividendsInterest ReceivableSales	- Select -	- Select -
	Accounts Payable-Arlene GurleyAllowance for Doubtful AccountsBad Debt ExpenseDividendsInterest ReceivableSales	- Select -	- Select -
Jan. 19	Accounts Payable-Arlene GurleyAdvertising ExpenseBad Debt ExpenseCashInterest ReceivableSales	- Select -	- Select -
	Accounts Receivable-Arlene GurleyAdvertising ExpenseBad Debt ExpenseCashInterest ReceivableSales	- Select -	- Select -
Apr. 3	Accounts Receivable-Premier GS Co.Allowance for Doubtful AccountsBad Debt ExpenseCashNotes ReceivableSales	- Select -	- Select -
	Accounts Receivable-Premier GS Co.Allowance for Doubtful AccountsBad Debt ExpenseCashNotes ReceivableSales	- Select -	- Select -
July 16	Accounts Payable-Hayden Co.Accounts Receivable-Hayden Co.Bad Debt ExpenseCashNotes ReceivableSales	- Select -	- Select -
	Accounts Receivable-Hayden Co.Allowance for Doubtful AccountsBad Debt ExpenseInterest ReceivableNotes ReceivableSales	- Select -	- Select -
	Accounts Receivable-Hayden Co.Allowance for Doubtful AccountsBad Debt ExpenseCashNotes ReceivableSales	- Select -	- Select -
Nov. 23	Accounts Receivable-Harry CarrAllowance for Doubtful AccountsBad Debt ExpenseDividendsInterest ReceivableSales	- Select -	- Select -
	Accounts Payable-Harry CarrAllowance for Doubtful AccountsBad Debt ExpenseDividendsInterest ReceivableSales	- Select -	- Select -
Nov. 23	Accounts Payable-Harry CarrAdvertising ExpenseBad Debt ExpenseCashInterest ReceivableSales	- Select -	- Select -
	Accounts Receivable-Harry CarrAdvertising ExpenseBad Debt ExpenseCashInterest ReceivableSales	- Select -	- Select -
Dec. 31	Allowance for Doubtful AccountsBad Debt ExpenseCashInterest ExpenseNotes ReceivableSales	- Select -	- Select -
	Accounts Payable-Cavey Co.Accounts Receivable-Cavey Co.Allowance for Doubtful AccountsBad Debt ExpenseInterest RevenueNotes Receivable	- Select -	- Select -
	Accounts Payable-Fogle Co.Accounts Receivable-Fogle Co.Allowance for Doubtful AccountsBad Debt ExpenseCashSales	- Select -	- Select -
	Accounts Payable-Lake FurnitureAccounts Receivable-Lake FurnitureAllowance for Doubtful AccountsBad Debt ExpenseCashSales	- Select -	- Select -
	Accounts Payable-Melinda ShryerAccounts Receivable-Melinda ShryerAllowance for Doubtful AccountsBad Debt ExpenseCashSales	- Select -	- Select -
Dec. 31	Accounts PayableAccounts ReceivableAllowance for Doubtful AccountsBad Debt ExpenseCashIncome Summary	- Select -	- Select -
	Accounts PayableAccounts ReceivableAllowance for Doubtful AccountsBad Debt ExpenseCashIncome Summary	- Select -	- Select -

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

Allowance for Doubtful Accounts
Jan. 19Apr. 3Nov. 23	fill in the blank ab43ea031fae04d_2	Jan. 1 Balance	fill in the blank ab43ea031fae04d_3
Jan. 19July 16Nov. 23	fill in the blank ab43ea031fae04d_5	Jan. 19July 16Dec. 31	fill in the blank ab43ea031fae04d_7
Jan. 19Nov. 29Dec. 31	fill in the blank ab43ea031fae04d_9	Apr. 3July 16Nov. 23	fill in the blank ab43ea031fae04d_11
		July 16Nov. 23Dec. 31 Unadjusted Balance	fill in the blank ab43ea031fae04d_13
		Apr. 3July 16Dec. 31 Adjusting Entry	fill in the blank ab43ea031fae04d_15
		Dec. 31 Adjusted Balance	fill in the blank ab43ea031fae04d_16

Bad Debt Expense
Dec. 31 Adjusting EntryDec. 31 Unadjusted Balance	fill in the blank ab43ea031fae04d_18

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3. Determine the 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 563919fa3060f96_1

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 1/2 of 1% of the sales of $15,800,000 for the year, determine the following:

a. Bad debt expense for the year. $fill in the blank 563919fa3060f96_2

b. Balance in the allowance account after the adjustment of December 31. $fill in the blank 563919fa3060f96_3

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 563919fa3060f96_4