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 $2,120 cash in full payment of Arlene’s account. Apr. 3 Wrote off the $12,150 balance owed by Premier GS Co., which is bankrupt. July 16 Received 25% of the $21,800 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 $3,455 cash in full payment. Dec. 31 Wrote off the following accounts as uncollectible (one entry): Cavey Co., $9,135; Fogle Co., $2,715; Lake Furniture, $6,975; Melinda Shryer, $1,970. 31 Based on an analysis of the $1,074,100 of accounts receivable, it was estimated that $46,700 will be uncollectible. Journalized the adjusting entry. Required: 1. Record the January 1 credit balance of $44,500 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 $1,074,100 balance in accounts receivable reflects the adjustments made during the year. Jan. 19-reinstate fill in the blank 72197600c017fc8_2 fill in the blank 72197600c017fc8_3 fill in the blank 72197600c017fc8_5 fill in the blank 72197600c017fc8_6 Jan. 19-collection fill in the blank 72197600c017fc8_8 fill in the blank 72197600c017fc8_9 fill in the blank 72197600c017fc8_11 fill in the blank 72197600c017fc8_12 Apr. 3 fill in the blank 72197600c017fc8_14 fill in the blank 72197600c017fc8_15 fill in the blank 72197600c017fc8_17 fill in the blank 72197600c017fc8_18 July 16 fill in the blank 72197600c017fc8_20 fill in the blank 72197600c017fc8_21 fill in the blank 72197600c017fc8_23 fill in the blank 72197600c017fc8_24 fill in the blank 72197600c017fc8_26 fill in the blank 72197600c017fc8_27 Nov. 23-reinstate fill in the blank 72197600c017fc8_29 fill in the blank 72197600c017fc8_30 fill in the blank 72197600c017fc8_32 fill in the blank 72197600c017fc8_33 Nov. 23-collection fill in the blank 72197600c017fc8_35 fill in the blank 72197600c017fc8_36 fill in the blank 72197600c017fc8_38 fill in the blank 72197600c017fc8_39 Dec. 31-write-off fill in the blank 72197600c017fc8_41 fill in the blank 72197600c017fc8_42 fill in the blank 72197600c017fc8_44 fill in the blank 72197600c017fc8_45 fill in the blank 72197600c017fc8_47 fill in the blank 72197600c017fc8_48 fill in the blank 72197600c017fc8_50 fill in the blank 72197600c017fc8_51 fill in the blank 72197600c017fc8_53 fill in the blank 72197600c017fc8_54 Dec. 31-adjusting fill in the blank 72197600c017fc8_56 fill in the blank 72197600c017fc8_57 fill in the blank 72197600c017fc8_59 fill in the blank 72197600c017fc8_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 2b1b79009fb7fd2_2 Jan. 1 Balance fill in the blank 2b1b79009fb7fd2_3 fill in the blank 2b1b79009fb7fd2_5 fill in the blank 2b1b79009fb7fd2_7 fill in the blank 2b1b79009fb7fd2_9 fill in the blank 2b1b79009fb7fd2_11 fill in the blank 2b1b79009fb7fd2_13 fill in the blank 2b1b79009fb7fd2_15 Dec. 31 Adjusted Balance fill in the blank 2b1b79009fb7fd2_16 Bad Debt Expense fill in the blank 2b1b79009fb7fd2_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). $fill in the blank 4e0baff48037fa8_1

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 $2,120 cash in full payment of Arlene’s account. Apr. 3 Wrote off the $12,150 balance owed by Premier GS Co., which is bankrupt. July 16 Received 25% of the $21,800 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 $3,455 cash in full payment. Dec. 31 Wrote off the following accounts as uncollectible (one entry): Cavey Co., $9,135; Fogle Co., $2,715; Lake Furniture, $6,975; Melinda Shryer, $1,970. 31 Based on an analysis of the $1,074,100 of accounts receivable, it was estimated that $46,700 will be uncollectible. Journalized the adjusting entry. Required: 1. Record the January 1 credit balance of $44,500 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 $1,074,100 balance in accounts receivable reflects the adjustments made during the year. Jan. 19-reinstate fill in the blank 72197600c017fc8_2 fill in the blank 72197600c017fc8_3 fill in the blank 72197600c017fc8_5 fill in the blank 72197600c017fc8_6 Jan. 19-collection fill in the blank 72197600c017fc8_8 fill in the blank 72197600c017fc8_9 fill in the blank 72197600c017fc8_11 fill in the blank 72197600c017fc8_12 Apr. 3 fill in the blank 72197600c017fc8_14 fill in the blank 72197600c017fc8_15 fill in the blank 72197600c017fc8_17 fill in the blank 72197600c017fc8_18 July 16 fill in the blank 72197600c017fc8_20 fill in the blank 72197600c017fc8_21 fill in the blank 72197600c017fc8_23 fill in the blank 72197600c017fc8_24 fill in the blank 72197600c017fc8_26 fill in the blank 72197600c017fc8_27 Nov. 23-reinstate fill in the blank 72197600c017fc8_29 fill in the blank 72197600c017fc8_30 fill in the blank 72197600c017fc8_32 fill in the blank 72197600c017fc8_33 Nov. 23-collection fill in the blank 72197600c017fc8_35 fill in the blank 72197600c017fc8_36 fill in the blank 72197600c017fc8_38 fill in the blank 72197600c017fc8_39 Dec. 31-write-off fill in the blank 72197600c017fc8_41 fill in the blank 72197600c017fc8_42 fill in the blank 72197600c017fc8_44 fill in the blank 72197600c017fc8_45 fill in the blank 72197600c017fc8_47 fill in the blank 72197600c017fc8_48 fill in the blank 72197600c017fc8_50 fill in the blank 72197600c017fc8_51 fill in the blank 72197600c017fc8_53 fill in the blank 72197600c017fc8_54 Dec. 31-adjusting fill in the blank 72197600c017fc8_56 fill in the blank 72197600c017fc8_57 fill in the blank 72197600c017fc8_59 fill in the blank 72197600c017fc8_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 2b1b79009fb7fd2_2 Jan. 1 Balance fill in the blank 2b1b79009fb7fd2_3 fill in the blank 2b1b79009fb7fd2_5 fill in the blank 2b1b79009fb7fd2_7 fill in the blank 2b1b79009fb7fd2_9 fill in the blank 2b1b79009fb7fd2_11 fill in the blank 2b1b79009fb7fd2_13 fill in the blank 2b1b79009fb7fd2_15 Dec. 31 Adjusted Balance fill in the blank 2b1b79009fb7fd2_16 Bad Debt Expense fill in the blank 2b1b79009fb7fd2_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). $fill in the blank 4e0baff48037fa8_1

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 26E

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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 $2,120 cash in full payment of Arlene’s account.
Apr.	3	Wrote off the $12,150 balance owed by Premier GS Co., which is bankrupt.
July	16	Received 25% of the $21,800 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 $3,455 cash in full payment.
Dec.	31	Wrote off the following accounts as uncollectible (one entry): Cavey Co., $9,135; Fogle Co., $2,715; Lake Furniture, $6,975; Melinda Shryer, $1,970.
	31	Based on an analysis of the $1,074,100 of accounts receivable, it was estimated that $46,700 will be uncollectible. Journalized the adjusting entry.

Required:

1. Record the January 1 credit balance of $44,500 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 $1,074,100 balance in accounts receivable reflects the adjustments made during the year.

Jan. 19-reinstate	fill in the blank 72197600c017fc8_2	fill in the blank 72197600c017fc8_3
	fill in the blank 72197600c017fc8_5	fill in the blank 72197600c017fc8_6
Jan. 19-collection	fill in the blank 72197600c017fc8_8	fill in the blank 72197600c017fc8_9
	fill in the blank 72197600c017fc8_11	fill in the blank 72197600c017fc8_12
Apr. 3	fill in the blank 72197600c017fc8_14	fill in the blank 72197600c017fc8_15
	fill in the blank 72197600c017fc8_17	fill in the blank 72197600c017fc8_18
July 16	fill in the blank 72197600c017fc8_20	fill in the blank 72197600c017fc8_21
	fill in the blank 72197600c017fc8_23	fill in the blank 72197600c017fc8_24
	fill in the blank 72197600c017fc8_26	fill in the blank 72197600c017fc8_27
Nov. 23-reinstate	fill in the blank 72197600c017fc8_29	fill in the blank 72197600c017fc8_30
	fill in the blank 72197600c017fc8_32	fill in the blank 72197600c017fc8_33
Nov. 23-collection	fill in the blank 72197600c017fc8_35	fill in the blank 72197600c017fc8_36
	fill in the blank 72197600c017fc8_38	fill in the blank 72197600c017fc8_39
Dec. 31-write-off	fill in the blank 72197600c017fc8_41	fill in the blank 72197600c017fc8_42
	fill in the blank 72197600c017fc8_44	fill in the blank 72197600c017fc8_45
	fill in the blank 72197600c017fc8_47	fill in the blank 72197600c017fc8_48
	fill in the blank 72197600c017fc8_50	fill in the blank 72197600c017fc8_51
	fill in the blank 72197600c017fc8_53	fill in the blank 72197600c017fc8_54
Dec. 31-adjusting	fill in the blank 72197600c017fc8_56	fill in the blank 72197600c017fc8_57
	fill in the blank 72197600c017fc8_59	fill in the blank 72197600c017fc8_60

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


fill in the blank 2b1b79009fb7fd2_2	Jan. 1 Balance	fill in the blank 2b1b79009fb7fd2_3
fill in the blank 2b1b79009fb7fd2_5		fill in the blank 2b1b79009fb7fd2_7
fill in the blank 2b1b79009fb7fd2_9		fill in the blank 2b1b79009fb7fd2_11
		fill in the blank 2b1b79009fb7fd2_13
		fill in the blank 2b1b79009fb7fd2_15
	Dec. 31 Adjusted Balance	fill in the blank 2b1b79009fb7fd2_16

Bad Debt Expense
	fill in the blank 2b1b79009fb7fd2_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).
$fill in the blank 4e0baff48037fa8_1

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 ½ of 1% of the sales of $6,630,000 for the year, determine the following:

a. Bad debt expense for the year.
$fill in the blank 4e0baff48037fa8_2

b. Balance in the allowance account after the adjustment of December 31.
$fill in the blank 4e0baff48037fa8_3

c. Expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry).
$fill in the blank 4e0baff48037fa8_4

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