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. Journalize the receipt of $2,585 cash in full payment of Arlene’s account. Apr. 3. Wrote off the $14,810 balance owed by Premier GS Co., which is bankrupt. July 16. Received 40% of the $26,600 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 $4,215 cash in full payment. Dec. 31. Wrote off the following accounts as uncollectible (compound entry): Cavey Co., $11,140 ; Fogle Co., $3,310 ; Lake Furniture, $ 8,505 ; Melinda Shryer, $2,405. Dec. 31. Based on an analysis of the $1,311,000 of accounts receivable, it was estimated that $57,000 will be uncollectible. Journalize the adjusting entry. 2. b. Post each entry that affects the following T accounts and determine the new balances: Allowance for Doubtful Accounts Jan. 1 Balance Dec. 31 Adjusted Balance Bad Debt Expense
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. Journalize the receipt of $2,585 cash in full payment of Arlene’s account. Apr. 3. Wrote off the $14,810 balance owed by Premier GS Co., which is bankrupt. July 16. Received 40% of the $26,600 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 $4,215 cash in full payment. Dec. 31. Wrote off the following accounts as uncollectible (compound entry): Cavey Co., $11,140 ; Fogle Co., $3,310 ; Lake Furniture, $ 8,505 ; Melinda Shryer, $2,405. Dec. 31. Based on an analysis of the $1,311,000 of accounts receivable, it was estimated that $57,000 will be uncollectible. Journalize the adjusting entry. 2. b. Post each entry that affects the following T accounts and determine the new balances: Allowance for Doubtful Accounts Jan. 1 Balance Dec. 31 Adjusted Balance Bad Debt Expense
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter21: Accounting For Accruals, Deferrals, And Reversing Entries
Section21.1: Accruals
Problem 1OYO
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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. Journalize the receipt of $2,585 cash in full payment of Arlene’s account. | |||||||||||||||||||||||||||||
| Apr. 3. | Wrote off the $14,810 balance owed by Premier GS Co., which is bankrupt. | |||||||||||||||||||||||||||||
| July 16. | Received 40% of the $26,600 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 $4,215 cash in full payment. | |||||||||||||||||||||||||||||
| Dec. 31. | Wrote off the following accounts as uncollectible (compound entry): Cavey Co., $11,140 ; Fogle Co., $3,310 ; Lake Furniture, $ 8,505 ; Melinda Shryer, $2,405. | |||||||||||||||||||||||||||||
| Dec. 31. |
Based on an analysis of the $1,311,000 of accounts receivable, it was estimated that $57,000 will be uncollectible. Journalize the 2. b.
|
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