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The following transactions were completed by Daws Company during the current fiscal year ended December 31:

Jan. 29.		Received 35% of the $9,000 balance owed by Kovar Co., a bankrupt business, and wrote off the remainder as uncollectible.
Apr. 18.		Reinstated the account of Spencer Clark, which had been written off in the preceding year as uncollectible. Journalized the receipt of $4,000 cash in full payment of Clark's account.
Aug. 9.		Wrote off the $11,850 balance owed by Iron Horse Co., which has no assets.
Nov. 7.		Reinstated the account of Vinyl Co., which had been written off in the preceding year as uncollectible. Journalized the receipt of $7,000 cash in full payment of the account.
Dec. 31.		Wrote off the following accounts as uncollectible (one entry): Beth Connelly Inc., $12,100; DeVine Co., $8,110; Moser Distributors, $21,950; Oceanic Optics, $10,000.
31.		Based on an analysis of the $1,450,000 of accounts receivable, it was estimated that $60,000 will be uncollectible. Journalized the adjusting entry.

Instructions

Record the January 1 credit balance of $54,200 in a T account for Allowance for Doubtful Accounts.

Journalize the transactions. Post each entry that affects the following selected T accounts and determine the new balances:

Allowance for Doubtful Accounts

Bad Debt Expense

Determine the expected net realizable value of the accounts receivable as of December 31.

Check Figure: $1,390,000

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 $13,200,000 for the year, determine the following:

Bad debt expense for the year.

Balance in the allowance account after the adjustment of December 31.

Expected net realizable value of the accounts receivable as of December 31.

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