Number 4 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 $1,400,700 balance in accounts receivablereflects the adjustments made during the year.Jan. 19 Accounts Receivable-Arlene GurleyAllowance for Doubtful AccountsV2,760v2,760Jan. 19 Cash - v2,760 VAccounts Receivable-Arlene GurleyV2,760Apr. 3 Allowance for Doubtful AccountsAccounts Receivable-Premier GS Co.v15,81015,810July 16 Cash V12,780Allowance for Doubtful Accounts V15,620Accounts Receivable-Hayden Co.. V28,400Nov. 23 Accounts Receivable-Harry CarrAllowance for Doubtful Accountsv4,500V4,500Nov. 23 Cash- v4,500Accounts Receivable-Harry Carr V4,500 VDec. 31 Allowance for Doubtful Accounts V27,075Accounts Receivable-Cavey Co. V11,895 VAccounts Receivable-Fogle Co. V3,535Accounts Receivable-Lake Furniture V9,080Accounts Receivable-Melinda Shryer - V2,565Dec. 31 Bad Debt ExpenseV54,145Allowance for Doubtful AccountsV54,145VFeedback2. b. Post each entry that affects the following T accounts and determine the new balances:Allowance for Doubtful AccountsApr. 3- V15,810 VPan. 1 Balance58,000 VJuly 16 V15,620 vJan, 19 - V2,760 VDec. 31 - V27,075 VNov. 23 V4,500Dec. 31 Unadjusted BalanceV6,755Dec. 31 Adjusting Entry54,145Dec. 31 Adjusted Balance60,900Bad Debt ExpenseDec. 31 Adjusting Entry V54,145Feedback3. Determine the expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry).1,339,8004. 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 ½ of1% of the sales of $8,650,000 for the year, determine the following:a. Bad debt expense for the year.86,500 xb. Balance in the allowance account after the adjustment of December 31.93,255 xc. Expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry).1,307,445 x Allowance method entriesThe 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 $2,760 cash in full payment of Arlene'saccount.Apr. 3. Wrote off the $15,810 balance owed by Premier GS Co., which is bankrupt.July 16. Received 45% of the $28,400 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 $4,500 cash in full payment.Dec.Wrote off the following accounts as uncollectible (compound entry): Cavey Co., $11,895 ; Fogle Co., $3,535 ; Lake Furniture, $ 9,080 ; Melinda Shryer, $2,565.31.Dec.Based on an analysis of the $1,400,700 of accounts receivable, it was estimated that $60,900 will be uncollectible. Journalized the adjusting entry.31.Required:1. Record the January 1 credit balance of $58,000 in a Taccount presented below in requirement 2b for Allowance for Doubtful Accounts.

Question

Accepted Answer

The direct write off method is recognising the amounts recognised as uncollectible and will be…