The following transactions were completed by Wild Trout Gallery during the current fiscal year ended December 31 : January 19. Reinstated the account of Arlene Gurley, which had been written off in the preceding year as uncollectible. Journalized the receipt of $2,260 cash in full payment of Arlene's account. April 3. Wrote off the $12,950 balance owed by Premier GSO, which is bankrupt. July 16. Received 45% of the $23,200 balance owed by Hayden Co., a bankrupt business, and wrote off the remainder as uncollectible. November 23. Reinistated the account of Harry Carr, which had been written off two years earlier as uncollectible. Recorded the receipt of $3,685 cash in full payment. December 31. Wrote off the following accounts as uncollectible (compound entry): Cavey Co, $9,740; Fogle Co., $2,895; Lake Furniture, $7,435; Melinda Shryer, $2,100. December 31. Based on an analysis of the $1,147,700 of accounts receivable, it was estimated that $49,900 will be uncollectible. Journalized the adjusting entry. Required: 1. Record the January 1 credit balance of $47,500 in a T account presented below in requirement 2b for Allowance for Doubtful Accounts. Jan, 19 Cash 2,660 Accounts Recewable-Arlene Gurley 4 Apr. 3 July 16 \begin{tabular}{|c|c|c|} \hline Cash & 5,500 & \\ \hline Allowance for Doubrful Accounts:- & 16.500 & \\ \hline Ascounts Recoivable: Havden Co: & & 22,000 \\ \hline \end{tabular} Now, 23 Accounts Receivable-Harry Carr - Alowance for Deubeful Accounts \begin{tabular}{|c|c|} \hline 4,000 & \\ \hline & 4000 \\ \hline \multirow[t]{2}{*}{1000} & \\ \hline & 4,000 \\ \hline \end{tabular} Nov:23 Cash : Accounts Receivable Harry Carr 4,000 Dec. 31 Dec. 31 Bed Debe Expense 565% Allowance for Doubtful Accounts 56,590 2. b. Post each entry that affects the following T accounts and determinic tir new balances: 3. Determine the expocted net realizable value of the accounts receivable as of December 31 (after alf of the adjustments and the adjusting entrv). 1 4. Assuming that instead of basing the provision for uncollectible accounts on an analysis of receivables, the adjusting entry on De been based on an estimated expense of 1/2 of 1% of the sales of 57,090,000 for the vear, determine the following: a. Bod debt expense for the year. b. Balance in the allowance account after the adjustment of December 31 . 9 3. Determine the expectud net feslizable value of the accounts receivable as of Dectmber 31 . cafter alf of the adjustments and the adjusting entry). 4. Assuming that instead of bosing the provision for uncollectoble accounts on an analysis of receivables, the adjusting entry on December 31 had been based on an estimated expense of k of 1% of the sales of $7,090,000 for the year, determine the following: a. Bod debt expense for the year. 1 b. Balance in the sllawance account after the adjuviment of December at. 1 c. Expected net realizable value of the eccouns receivsble as of December 31 (aftec alf of the adjustments and the adjuting entry) The following transactions were completed by Wild Trout Gallery during the current fiscal year ended December 31 : January 19. Reinstated the account of Arlene Gurley, which had been written off in the preceding year as uncollectible. Journalized the receipt of $2,260 cash in full payment of Arlene's account. April 3. Wrote off the $12,950 balance owed by Premier GSO, which is bankrupt. July 16. Received 45% of the $23,200 balance owed by Hayden Co., a bankrupt business, and wrote off the remainder as uncollectible. November 23. Reinistated the account of Harry Carr, which had been written off two years earlier as uncollectible. Recorded the receipt of $3,685 cash in full payment. December 31. Wrote off the following accounts as uncollectible (compound entry): Cavey Co, $9,740; Fogle Co., $2,895; Lake Furniture, $7,435; Melinda Shryer, $2,100. December 31. Based on an analysis of the $1,147,700 of accounts receivable, it was estimated that $49,900 will be uncollectible. Journalized the adjusting entry. Required: 1. Record the January 1 credit balance of $47,500 in a T account presented below in requirement 2b for Allowance for Doubtful Accounts. Jan, 19 Cash 2,660 Accounts Recewable-Arlene Gurley 4 Apr. 3 July 16 \begin{tabular}{|c|c|c|} \hline Cash & 5,500 & \\ \hline Allowance for Doubrful Accounts:- & 16.500 & \\ \hline Ascounts Recoivable: Havden Co: & & 22,000 \\ \hline \end{tabular} Now, 23 Accounts Receivable-Harry Carr - Alowance for Deubeful Accounts \begin{tabular}{|c|c|} \hline 4,000 & \\ \hline & 4000 \\ \hline \multirow[t]{2}{*}{1000} & \\ \hline & 4,000 \\ \hline \end{tabular} Nov:23 Cash : Accounts Receivable Harry Carr 4,000 Dec. 31 Dec. 31 Bed Debe Expense 565% Allowance for Doubtful Accounts 56,590 2. b. Post each entry that affects the following T accounts and determinic tir new balances: 3. Determine the expocted net realizable value of the accounts receivable as of December 31 (after alf of the adjustments and the adjusting entrv). 1 4. Assuming that instead of basing the provision for uncollectible accounts on an analysis of receivables, the adjusting entry on De been based on an estimated expense of 1/2 of 1% of the sales of 57,090,000 for the vear, determine the following: a. Bod debt expense for the year. b. Balance in the allowance account after the adjustment of December 31 . 9 3. Determine the expectud net feslizable value of the accounts receivable as of Dectmber 31 . cafter alf of the adjustments and the adjusting entry). 4. Assuming that instead of bosing the provision for uncollectoble accounts on an analysis of receivables, the adjusting entry on December 31 had been based on an estimated expense of k of 1% of the sales of $7,090,000 for the year, determine the following: a. Bod debt expense for the year. 1 b. Balance in the sllawance account after the adjuviment of December at. 1 c. Expected net realizable value of the eccouns receivsble as of December 31 (aftec alf of the adjustments and the adjuting entry)
