Please help with number 4 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. 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 GurleyV2,760 VAllowance for Doubtful AccountsV2,760Jan. 19 Cash V2,760Accounts Receivable-Arlene GurleyV2,760Allowance for Doubtful Accounts V15,810Accounts Receivable-Premier GS Co. V15,810July 16 Cash v12,780Allowance for Doubtful Accounts V15,620Accounts Receivable-Hayden Co.. V28,400Nov. 23 Accounts Receivable-Harry Carr ♥ v4,500 VAllowance for Doubtful Accounts V4,500Nov. 23 Cash v4,500 VAccounts Receivable-Harry Carr V4,500Dec. 31 Allowance for Doubtful AccountsAccounts Receivable-Cavey Co.V27,075 V. V11,895Accounts Receivable-Fogle Co. V3,535Accounts Receivable-Lake FurnitureAccounts Receivable-Melinda ShryerV9,0802,565Dec. 31 Bad Debt ExpenseV54,145Allowance for Doubtful Accounts V54,145 VFeedback2. b. Post each entry that affects the following T accounts and determine the new balances:Allowance for Doubtful AccountsApr. 3 V15,810 vJan. 1 Balance58,000 VJuly 16 - V15,620 vJan. 19 - V2,760 VDec. 31 - V27,075 VNov. 23 V4,500Dec. 31 Unadjusted BalanceV6,755 VDec. 31 Adjusting Entry54,145 VDec. 31 Adjusted Balance60,900Bad Debt ExpenseDec. 31 Adjusting Entry -54,145Feedback3. Determine the expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry).1,339,800 V4. 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 of1% of the sales of $8,650,000 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).

The allowance for doubtful accounts is created to record estimated bad debt expense for the period.…

an. 19 Accounts Receivable-Arlene Gurley · Allowance for Doubtful Accounts · 2,760 2,760 an. 19 Cash- v 2,760 V Accounts Receivable-Arlene Gurley - V 2,760 pr. 3 Allowance for Doubtful Accounts - 15,810 V Accounts Receivable-Premier GS Co. V 15,810 12,780 15,620 uly 16 Cash - v Allowance for Doubtful Accounts V V Accounts Receivable-Hayden Co. V 28,400 ov. 23 Accounts Receivable-Harry Carr Allowance for Doubtful Accounts · V 4,500 4,500 ov. 23 Cash - V 4,500 Accounts Receivable-Harry Carr V 4,500 mec. 31 Allowance for Doubtful Accounts Accounts Receivable-Cavey Co. Accounts Receivable-Fogle Co. - Accounts Receivable-Lake Furniture Accounts Receivable-Melinda Shryer ▪ ▪ 27,075 . V I1,895 3,535V 9,080 2,565 mec. 31 Bad Debt Expense ▪ 54,145 V Allowance for Doubtful Accounts V 54,145 Feedback b. Post each entry that affects the following T accounts and determine the new balances: Allowance for Doubtful Accounts 15,810 v Jan. 1 Balance 15,620 vJan. 19 - 27,075 v Nov. 23 * . 3 V 58,000 ly 16 ▪ 2,760 V c. 31 ▪ 4,500 Dec. 31 Unadiusted Balance - Dec. 31 Adjusting Entry - Dec. 31 Adjusted Balance 6,755 V 54,145 V 60,900 Bad Debt Expense C. 31 Adjusting Entry 54,145 Feedback Determine the expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry). 1,339,800 v 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 a b of the sales of $8,650,000 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 (after all of the adjustments and the adjusting entry).

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter14: Accounting For Uncollectible Accounts Receivable

Section14.1: Uncollectible Accounts Receivable

Problem 1OYO