Entries Related to Uncollectible Accounts

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 $1,875 cash in full payment of Arlenes account.
Apr.	3	Wrote off the $10,740 balance owed by Premier GS Co., which is bankrupt.
July	16	Received 45% of the $19,300 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 $3,055 cash in full payment.
Dec.	31	Wrote off the following accounts as uncollectible (one entry): Cavey Co., $8,080; Fogle Co., $2,400; Lake Furniture, $6,170; Melinda Shryer, $1,745.
	31	Based on an analysis of the $952,200 of accounts receivable, it was estimated that $41,400 will be uncollectible. Journalized the adjusting entry.

Required:

1. Record the January 1 credit balance of $39,400 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 $952,200 balance in accounts receivable reflects the adjustments made during the year.

Jan. 19-reinstate	Accounts Receivable-Arlene GurleyAllowance for Doubtful AccountsBad Debt ExpenseInterest ReceivableSalesAccounts Receivable-Arlene Gurley	Accounts Receivable-Arlene Gurley	Accounts Receivable-Arlene Gurley
	Accounts Receivable-Arlene GurleyAllowance for Doubtful AccountsBad Debt ExpenseInterest ReceivableSalesAllowance for Doubtful Accounts	Allowance for Doubtful Accounts	Allowance for Doubtful Accounts
Jan. 19-collection	Accounts Receivable-Arlene GurleyAllowance for Doubtful AccountsBad Debt ExpenseCashSalesCash	Cash	Cash
	Accounts Receivable-Arlene GurleyAllowance for Doubtful AccountsBad Debt ExpenseCashSalesAccounts Receivable-Arlene Gurley	Accounts Receivable-Arlene Gurley	Accounts Receivable-Arlene Gurley
Apr. 3	Accounts Receivable-Premier GS Co.Allowance for Doubtful AccountsBad Debt ExpenseNotes ReceivableSalesAllowance for Doubtful Accounts	Allowance for Doubtful Accounts	Allowance for Doubtful Accounts
	Accounts Receivable-Premier GS Co.Allowance for Doubtful AccountsBad Debt ExpenseNotes ReceivableSalesAccounts Receivable-Premier GS Co.	Accounts Receivable-Premier GS Co.	Accounts Receivable-Premier GS Co.
July 16	Accounts Payable-Hayden Co.Accounts Receivable-Hayden Co.CashNotes ReceivableSalesCash	Cash	Cash
	Accounts Receivable-Hayden Co.Allowance for Doubtful AccountsInterest ReceivableNotes ReceivableSalesAllowance for Doubtful Accounts	Allowance for Doubtful Accounts	Allowance for Doubtful Accounts
	Accounts Receivable-Hayden Co.Allowance for Doubtful AccountsCashNotes ReceivableSalesAccounts Receivable-Hayden Co.	Accounts Receivable-Hayden Co.	Accounts Receivable-Hayden Co.
Nov. 23-reinstate	Accounts Receivable-Harry CarrAllowance for Doubtful AccountsCashInterest ReceivableSalesAccounts Receivable-Harry Carr	Accounts Receivable-Harry Carr	Accounts Receivable-Harry Carr
	Accounts Receivable-Harry CarrAllowance for Doubtful AccountsCashInterest ReceivableSalesAllowance for Doubtful Accounts	Allowance for Doubtful Accounts	Allowance for Doubtful Accounts
Nov. 23-collection	Accounts Receivable-Harry CarrAllowance for Doubtful AccountsCashInterest ReceivableSalesCash	Cash	Cash
	Accounts Receivable-Harry CarrAllowance for Doubtful AccountsCashInterest ReceivableSalesAccounts Receivable-Harry Carr	Accounts Receivable-Harry Carr	Accounts Receivable-Harry Carr
Dec. 31-write-off	Allowance for Doubtful AccountsBad Debt ExpenseCashInterest ExpenseSalesAllowance for Doubtful Accounts	Allowance for Doubtful Accounts	Allowance for Doubtful Accounts
	Accounts Payable-Cavey Co.Accounts Receivable-Cavey Co.Allowance for Doubtful AccountsBad Debt ExpenseInterest RevenueAccounts Receivable-Cavey Co.	Accounts Receivable-Cavey Co.	Accounts Receivable-Cavey Co.
	Accounts Payable-Fogle Co.Accounts Receivable-Fogle Co.Allowance for Doubtful AccountsBad Debt ExpenseCashAccounts Receivable-Fogle Co.	Accounts Receivable-Fogle Co.	Accounts Receivable-Fogle Co.
	Accounts Payable-Lake FurnitureAccounts Receivable-Lake FurnitureAllowance for Doubtful AccountsCashSalesAccounts Receivable-Lake Furniture	Accounts Receivable-Lake Furniture	Accounts Receivable-Lake Furniture
	Accounts Payable-Melinda ShryerAccounts Receivable-Melinda ShryerAllowance for Doubtful AccountsCashSalesAccounts Receivable-Melinda Shryer	Accounts Receivable-Melinda Shryer	Accounts Receivable-Melinda Shryer
Dec. 31-adjusting	Accounts PayableAccounts ReceivableAllowance for Doubtful AccountsBad Debt ExpenseInterest ReceivableBad Debt Expense	Bad Debt Expense	Bad Debt Expense
	Accounts PayableAccounts ReceivableAllowance for Doubtful AccountsBad Debt ExpenseInterest ReceivableAllowance for Doubtful Accounts	Allowance for Doubtful Accounts	Allowance for Doubtful Accounts

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

Allowance for Doubtful Accounts
Jan. 19Apr. 3Nov. 23Apr. 3	fill in the blank 97f303064fdb049_2	Jan. 1 Balance	fill in the blank 97f303064fdb049_3
Jan. 19July 16Nov. 23July 16	fill in the blank 97f303064fdb049_5	Jan. 19July 16Dec. 31Jan. 19	fill in the blank 97f303064fdb049_7
Jan. 19Nov. 29Dec. 31Dec. 31	fill in the blank 97f303064fdb049_9	Apr. 3July 16Nov. 23Nov. 23	fill in the blank 97f303064fdb049_11
		July 16Nov. 23Dec. 31 Unadjusted BalanceDec. 31 Unadjusted Balance	fill in the blank 97f303064fdb049_13
		Apr. 3July 16Dec. 31 Adjusting EntryDec. 31 Adjusting Entry	fill in the blank 97f303064fdb049_15
		Dec. 31 Adjusted Balance	fill in the blank 97f303064fdb049_16

Bad Debt Expense
Dec. 31 Adjusting EntryDec. 31 Unadjusted BalanceDec. 31 Adjusting Entry	fill in the blank 97f303064fdb049_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 bf8854f7efa401a_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 $5,880,000 for the year, determine the following:

a. Bad debt expense for the year. $fill in the blank bf8854f7efa401a_2

b. Balance in the allowance account after the adjustment of December 31. $fill in the blank bf8854f7efa401a_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 bf8854f7efa401a_4