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 $1,630 cash in full payment of Arlene’s account. Apr. 3. Wrote off the $9,340 balance owed by Premier GS Co., which is bankrupt. July 16. Received 25% of the $16,800 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 $2,655 cash in full payment. Dec. 31. Wrote off the following accounts as uncollectible (one entry): Cavey Co.,$7,025; Fogle Co., $2,085; Lake Furniture, $5,365; Melinda Shryer, $1,515. Dec. 31. Based on an analysis of the $825,700 of accounts receivable, it was estimated that $35,900 will be uncollectible. Journalized the adjusting entry. Required: 1. Record the January 1 credit balance of $34,200 in a T account presented below in requirement 2b for Allowance for Doubtful Accounts. 2. a. Journalize the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. Note: For the December 31 adjusting entry, assume the $825,700 balance in accounts receivable reflects the adjustments made during the year. 2. b. Post each entry that affects the following T accounts and determine the new balances: 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 ½ of 1% of the sales of $5,100,000 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.

Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter9: Receivables
Section: Chapter Questions
Problem 10E: Using data in Exercise 9-9, assume that the allowance for doubtful accounts for Waddell Industries...
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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 $1,630 cash in full payment of Arlene’s account.
Apr. 3. Wrote off the $9,340 balance owed by Premier GS Co., which is bankrupt.
July 16. Received 25% of the $16,800 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 $2,655 cash in full payment.
Dec. 31. Wrote off the following accounts as uncollectible (one entry): Cavey Co.,$7,025; Fogle Co., $2,085; Lake Furniture, $5,365; Melinda Shryer, $1,515.
Dec. 31. Based on an analysis of the $825,700 of accounts receivable, it was estimated that $35,900 will be uncollectible. Journalized the adjusting entry.

Required:

1. Record the January 1 credit balance of $34,200 in a T account presented below in requirement 2b for Allowance for Doubtful Accounts.

2. a. Journalize the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. Note: For the December 31 adjusting entry, assume the $825,700 balance in accounts receivable reflects the adjustments made during the year.

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

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 ½ of 1% of the sales of $5,100,000 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).

 

I only need help with the following images with the X or missing information.

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
789,800 V
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 2
$5,100,000 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).
Transcribed Image Text:3. Determine the expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry). $4 789,800 V 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 2 $5,100,000 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).
Dec. 31-adjusting
Bad Debt Expense v
15,990 X
Allowance for Doubtful Accounts v
15,990 X
Feedback
V Check My Work
Set up T accounts.
Recall that under the allowance method, the entry to write off an account debits Allowance for Doubtful Accounts
In such cases where an account receivable that has been written off is later collected, the account is reinstated b
The amount of bad debt expense is affected by the balance in the allowance account.
2. b. Post each entry that affects the following T accounts and determine the new balances:
Allowance for Doubtful Accounts
Apr. 3 V
9,340
V Jan. 1 Balance
34,200
July 16 v
12,600
Jan. 19 V
1,630 V
Dec. 31 V
15,990
Nov. 23 V
2,655
Dec. 31 Unadjusted Balance v
34,200 x
Dec. 31 Adjusting Entry v
Dec. 31 Adjusted Balance
Transcribed Image Text:Dec. 31-adjusting Bad Debt Expense v 15,990 X Allowance for Doubtful Accounts v 15,990 X Feedback V Check My Work Set up T accounts. Recall that under the allowance method, the entry to write off an account debits Allowance for Doubtful Accounts In such cases where an account receivable that has been written off is later collected, the account is reinstated b The amount of bad debt expense is affected by the balance in the allowance account. 2. b. Post each entry that affects the following T accounts and determine the new balances: Allowance for Doubtful Accounts Apr. 3 V 9,340 V Jan. 1 Balance 34,200 July 16 v 12,600 Jan. 19 V 1,630 V Dec. 31 V 15,990 Nov. 23 V 2,655 Dec. 31 Unadjusted Balance v 34,200 x Dec. 31 Adjusting Entry v Dec. 31 Adjusted Balance
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