The following transactions are among those completed by Warton Building Supplies this year:
Feb. 6 Wrote off as uncollectible the account of Milo, Inc., $ 1,251.17. The company had gone out of business, leaving no assets.
Mar. 15 Reinstated the account of L. Whinn, which had been written off in the preceding year; received $ 217.16 in full payment of account.
Aug. 17 Received $ 154 unexpectedly from C. P. Brent, whose account had been written off last year in the amount of $ 154. Reinstated the account and recorded the collection of $ 154.
Oct. 15 Reinstated the account of Dolan and Son, which had been written off two years earlier, and received $ 839.70 in full payment.
Dec. 29 Journalized a compound entry to write off the following accounts as uncollectible: D. C. Lake, $ 368.00; R. R. Mort, $ 752.28; N. Shell, $ 1,374.91; D. Trent, $ 1,962.15.
31 On the basis of an aged analysis of Accounts Receivable of $ 87,811.14, estimated that $ 5,772.55 will be uncollectible. Recorded the adjusting entry.
31 Recorded the entry to close the appropriate account to Income Summary.

Required
1. Open the following accounts, recording the credit balance of Allowance for Doubtful Accounts as of January 1 of this fiscal year.

2. Record in a general journal, pages 24 and 25, the transactions and the adjusting and closing entries. After each entry, post to the three selected ledger accounts.
3. Prepare the Current Assets section of the balance sheet. Other pertinent accounts are Cash, $ 14,227.12; Merchandise Inventory, $ 146,507.50; and Prepaid Insurance, $756.00.

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14 Allowance for Doubtful Accounts 5,272.36 313 Income Summary 642 Bad Debts Expense