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. Journalize the receipt of $1,565 cash in full payment of Arlenes account.
Apr. 3.	Wrote off the $8,970 balance owed by Premier GS Co., which is bankrupt.
July 16.	Received 25% of the $16,100 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 $2,550 cash in full payment.
Dec. 31.	Wrote off the following accounts as uncollectible (compound entry): Cavey Co., $6,745 ; Fogle Co., $2,005 ; Lake Furniture, $ 5,150 ; Melinda Shryer, $1,455.
Dec. 31.	Based on an analysis of the $793,500 of accounts receivable, it was estimated that $34,500 will be uncollectible. Journalize the adjusting entry.

Required:

1. Record the January 1 credit balance of $32,900 in a T account presented below in requirement 2b for Allowance for Doubtful Accounts.

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 $793,500 balance in accounts receivable reflects the adjustments made during the year.

Jan. 19-reinstate	Accounts Payable-Arlene GurleyAccounts Receivable-Arlene GurleyAllowance for Doubtful AccountsBad Debt ExpenseInterest ReceivableNotes Receivable	- Select -
	Accounts Payable-Arlene GurleyAccounts Receivable-Arlene GurleyAllowance for Doubtful AccountsBad Debt ExpenseInterest ReceivableNotes Receivable		- Select -
Jan. 19-collection	Accounts Payable-Arlene GurleyAccounts Receivable-Arlene GurleyAllowance for Doubtful AccountsBad Debt ExpenseCashNotes Receivable	- Select -
	Accounts Payable-Arlene GurleyAccounts Receivable-Arlene GurleyAllowance for Doubtful AccountsBad Debt ExpenseCashNotes Receivable		- Select -
Apr. 3	Accounts Payable-Premier GS Co.Accounts Receivable-Premier GS Co.Allowance for Doubtful AccountsBad Debt ExpenseCashNotes Receivable	- Select -
	Accounts Payable-Premier GS Co.Accounts Receivable-Premier GS Co.Allowance for Doubtful AccountsBad Debt ExpenseCashNotes Receivable		- Select -
July 16	Accounts Payable-Hayden Co.Accounts Receivable-Hayden Co.Bad Debt ExpenseCashNotes PayableNotes Receivable	- Select -	- Select -
	Accounts Payable-Hayden Co.Accounts Receivable-Hayden Co.Allowance for Doubtful AccountsBad Debt ExpenseInterest ReceivableNotes Receivable	- Select -	- Select -
	Accounts Payable-Hayden Co.Accounts Receivable-Hayden Co.Allowance for Doubtful AccountsBad Debt ExpenseInterest ReceivableNotes Receivable	- Select -	- Select -
Nov. 23-reinstate	Accounts Payable-Harry CarrAccounts Receivable-Harry CarrAllowance for Doubtful AccountsBad Debt ExpenseCashInterest Receivable	- Select -
	Accounts Payable-Harry CarrAccounts Receivable-Harry CarrAllowance for Doubtful AccountsBad Debt ExpenseCashInterest Receivable		- Select -
Nov. 23-collection	Accounts Payable-Harry CarrAccounts Receivable-Harry CarrAllowance for Doubtful AccountsBad Debt ExpenseCashInterest Receivable	- Select -
	Accounts Payable-Harry CarrAccounts Receivable-Harry CarrAllowance for Doubtful AccountsBad Debt ExpenseCashInterest Receivable		- Select -
Dec. 31-write-off	Accounts PayableAccounts ReceivableAllowance for Doubtful AccountsBad Debt ExpenseCashNotes ReceivableSales	- Select -	- Select -
	Accounts Payable-Cavey Co.Accounts Receivable-Cavey Co.Allowance for Doubtful AccountsBad Debt ExpenseCashNotes ReceivableSales	- Select -	- Select -
	Accounts Payable-Fogle Co.Accounts Receivable-Fogle Co.Allowance for Doubtful AccountsBad Debt ExpenseCashNotes ReceivableSales	- Select -	- Select -
	Accounts Payable-Lake FurnitureAccounts Receivable-Lake FurnitureAllowance for Doubtful AccountsBad Debt ExpenseCashNotes ReceivableSales	- Select -	- Select -
	Accounts Payable-Melinda ShryerAccounts Receivable-Melinda ShryerAllowance for Doubtful AccountsBad Debt ExpenseCashNotes ReceivableSales	- Select -	- Select -
Dec. 31-adjusting	Accounts PayableAccounts ReceivableAllowance for Doubtful AccountsBad Debt ExpenseCashIncome Summary	- Select -
	Accounts PayableAccounts ReceivableAllowance for Doubtful AccountsBad Debt ExpenseCashIncome Summary		- Select -

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 3bb74efbdfe1fbe_2	Jan. 1 Balance	fill in the blank 3bb74efbdfe1fbe_3
Jan. 19July 16Nov. 23Dec. 31 Adjusting Entry	fill in the blank 3bb74efbdfe1fbe_5	Jan. 19Apr. 3July 16	fill in the blank 3bb74efbdfe1fbe_7
Jan. 19Nov. 23Dec. 31Dec. 31 Adjusting Entry	fill in the blank 3bb74efbdfe1fbe_9	Apr. 3July 16Nov. 23	fill in the blank 3bb74efbdfe1fbe_11
		Apr. 3July 16Dec. 31 Unadjusted Balance	fill in the blank 3bb74efbdfe1fbe_13
		Apr. 3July 16Dec. 31 Adjusting Entry	fill in the blank 3bb74efbdfe1fbe_15
		Dec. 31 Adjusted Balance	fill in the blank 3bb74efbdfe1fbe_16

Bad Debt Expense
Dec. 31 Adjusting EntryDec. 31 Unadjusted Balance	fill in the blank 3bb74efbdfe1fbe_18

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 774ae009df89fb8_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 of 1% of the sales of $4,900,000 for the year, determine the following:

a. Bad debt expense for the year. $fill in the blank 774ae009df89fb8_2

b. Balance in the allowance account after the adjustment of December 31. $fill in the blank 774ae009df89fb8_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 774ae009df89fb8_4