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W6 Homework - CNOW eBook Show Me How E Print Item 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 $2,710 cash in full payment of Arlene's account. Apr. 3 Wrote off the $15,530 balance owed by Premier GS Co., which is bankrupt. July 16 Received 45% of the $27,900 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 $4,415 cash in full payment. Dec. 31 Wrote off the following accounts as uncollectible (one entry): Cavey Co., $11,680; Fogle Co., $3,470; Lake Furniture, $8,915; Melinda Shryer, $2,520. 31 Based on an analysis of the $1,373,100 of accounts receivable, it was estimated that $59,700 will be uncollectible. Journalized the adjusting entry. Required: 1. Record the January 1 credit balance of $56,900 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 $1,373,100 balance in accounts receivable reflects the adjustments made during the year. Jan. 19-reinstate Accounts Receivable-Arlene Gurley 2,710 Allowance for Doubtful Accounts 2,710 Cash Jan. 19-collection 2,710 Accounts Receivable-Arlene Gurley 2,710 Apr. 3 Allowance for Doubtful Accounts 15,530 Accounts Receivable-Premier GS Co. 15,530 July 16 Cash 12,555 Allowance for Doubtful Accounts 15,345 Accounts Receivable-Hayden Co. 27,900 Nov. 23-reinstate 4,415 Accounts Receivable-Harry Carr Allowance for Doubtful Accounts 4,415 Nov. 23-collection Cash 4,415 Accounts Receivable-Harry Carr 4,415 Dec. 31-write-off Allowance for Doubtful Accounts 26,585 Accounts Receivable-Cavey Co. 11,680 Accounts Receivable-Fogle Co. 3,470 Accounts Receivable-Lake Furniture 8,915 Accounts Receivable-Melinda Shryer 2,520 Dec. 31-adjusting Bad Debt Expense 56,785 Allowance for Doubtful Accounts 56,785 2. b. Post each entry that affects the following T accounts and determine the new balances: Allowance for Doubtful Accounts Apr. 3 July 16 15,530 Jan. 1 Balance 15,345 Jan. 19 56,900 2,710 4,415 Dec. 31 56,785 Nov. 23 Dec. 31 Unadjusted Balance Dec. 31 Adjusting Entry Dec. 31 Adjusted Balance 56,785 Bad Debt Expense 3. Determine the expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry). 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 V2 of 1% of the sales of $8,480,000 for the year, determine the following: a. Bad debt expense for the year. b. Balance in the allowance account after the adjustment of December 31. C. Expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry)

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