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Allowance method entries

The following transactions were completed by 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 $2,415 cash in full payment of Arlenes account.
Apr. 3.	Wrote off the $13,840 balance owed by Premier GS Co., which is bankrupt.
July 16.	Received 40% of the $24,800 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 $3,935 cash in full payment.
Dec. 31.	Wrote off the following accounts as uncollectible (compound entry): Cavey Co., $10,410 ; Fogle Co., $3,090 ; Lake Furniture, $ 7,945 ; Melinda Shryer, $2,245.
Dec. 31.	Based on an analysis of the $1,223,600 of accounts receivable, it was estimated that $53,200 will be uncollectible. Journalized the adjusting entry.

Required:

1. Record the January 1 credit balance of $50,700 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 $1,223,600 balance in accounts receivable reflects the adjustments made during the year.

Jan. 19		fill in the blank 732538f70ff5fb9_2	fill in the blank 732538f70ff5fb9_3
		fill in the blank 732538f70ff5fb9_5	fill in the blank 732538f70ff5fb9_6
Jan. 19		fill in the blank 732538f70ff5fb9_8	fill in the blank 732538f70ff5fb9_9
		fill in the blank 732538f70ff5fb9_11	fill in the blank 732538f70ff5fb9_12
Apr. 3		fill in the blank 732538f70ff5fb9_14	fill in the blank 732538f70ff5fb9_15
		fill in the blank 732538f70ff5fb9_17	fill in the blank 732538f70ff5fb9_18
July 16		fill in the blank 732538f70ff5fb9_20	fill in the blank 732538f70ff5fb9_21
		fill in the blank 732538f70ff5fb9_23	fill in the blank 732538f70ff5fb9_24
		fill in the blank 732538f70ff5fb9_26	fill in the blank 732538f70ff5fb9_27
Nov. 23		fill in the blank 732538f70ff5fb9_29	fill in the blank 732538f70ff5fb9_30
		fill in the blank 732538f70ff5fb9_32	fill in the blank 732538f70ff5fb9_33
Nov. 23		fill in the blank 732538f70ff5fb9_35	fill in the blank 732538f70ff5fb9_36
		fill in the blank 732538f70ff5fb9_38	fill in the blank 732538f70ff5fb9_39
Dec. 31		fill in the blank 732538f70ff5fb9_41	fill in the blank 732538f70ff5fb9_42
		fill in the blank 732538f70ff5fb9_44	fill in the blank 732538f70ff5fb9_45
		fill in the blank 732538f70ff5fb9_47	fill in the blank 732538f70ff5fb9_48
		fill in the blank 732538f70ff5fb9_50	fill in the blank 732538f70ff5fb9_51
		fill in the blank 732538f70ff5fb9_53	fill in the blank 732538f70ff5fb9_54
Dec. 31		fill in the blank 732538f70ff5fb9_56	fill in the blank 732538f70ff5fb9_57
		fill in the blank 732538f70ff5fb9_59	fill in the blank 732538f70ff5fb9_60

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

Allowance for Doubtful Accounts
	fill in the blank db8e83feffd8f93_2	Jan. 1 Balance	fill in the blank db8e83feffd8f93_3
	fill in the blank db8e83feffd8f93_5		fill in the blank db8e83feffd8f93_7
	fill in the blank db8e83feffd8f93_9		fill in the blank db8e83feffd8f93_11
			fill in the blank db8e83feffd8f93_13
			fill in the blank db8e83feffd8f93_15
		Dec. 31 Adjusted Balance	fill in the blank db8e83feffd8f93_16

Bad Debt Expense
	fill in the blank db8e83feffd8f93_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).

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 $7,550,000 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). $

Allowance method entries The following transactions were completed by Wild Traut 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 $2,415 cash in full payment of Arlene's account. Apr. 3. Wrole off the $13,810 balance owed by Premier GS Co., which is bankrupt. July 16 Received 40% of the $24,800 balance owed by Hayden Co., a bankrupt business, and wrote off the remainder as uncollectible foy Reinstated the account of Harry Cart which had been written aft two years earlier as uncollectible. Recorded the receipt of $3,935 cash in full payment. Dec. Wrote of the following accounts as uncollectible (compound entry): Cavey Co., $10,410; Fogle Co., 53,090 : Lake 31. Furniture, $ 7,945 ; Melinda Shryer, $2,245. Dec. Based on an analysis of the $1,223,600 of accounts receivable, it was estimated that $53,200 will be uncollectible. 31. Journalized the adjusting entry. Required: 1. Record the January 1 credit balance of $50,700 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 entry, leave it blank. Note: For the December 31 adjusting entry, assume the $1,223,600 balance in accounts receivable reflects the adjustments made during the year. Jan. 19 Jan. 19 Apr 3 July 16 Nov. 23 Mau 73 Nov. 23 Dec. 31 Dec. 31 2. b. Post each entry that affects the following accounts and determine the new balances: Allowance for Doubtful Accounts Jan. 1 Balance Dec 31 Adjusted Balance 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 of 1% of the sales of $7,550,000 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. 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 12 of 1% of the sales of $7,550,000 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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