Entries Related to Uncollectible AccountsThe 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.I need assistance with the following problems in the images. Bad Debt Expense vDec. 31-adjusting16,514Allowance for Doubtful Accounts V16,514 XFeedbackV Check My WorkSet up T accounts.Recall that under the allowance method, the entry to write off an account debits Allowance for Doubtful Accounts and credits AcIn such cases where an account receivable that has been written off is later collected, the account is reinstated by an entry that reThe 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 AccountsApr. 3 V9,340V Jan. 1 Balance34,200July 16 v12,600Jan. 19 V1,630Dec. 31 V15,990Nov. 23 v2,655 VDec. 31 Unadjusted Balance v35,900 xDec. 31 Adjusting Entry v35,900 XDec. 31 Adjusted Balance789,800 x 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 of 1% of the sales of$5,100,000 for the year, determine the following:a. Bad debt expense for the year.$425,500 Vb. Balance in the allowance account after the adjustment of December 31.$ 789,800 Xc. Expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry).789,800 X

Accounts receivable: It is a current asset of an organization. It is the amount due from customers…

Answered: Entries Related to Uncollectible…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 84BPSB: Aging Method Bad Debt Expense Carol Simon, the manager of Handy Plumbing has provided the following...

See similar textbooks

Related questions

Question

100%

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.

I need assistance with the following problems in the images.

Bad Debt Expense v
Dec. 31-adjusting
16,514
Allowance for Doubtful Accounts V
16,514 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 and credits Ac
In such cases where an account receivable that has been written off is later collected, the account is reinstated by an entry that re
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
Dec. 31 V
15,990
Nov. 23 v
2,655 V
Dec. 31 Unadjusted Balance v
35,900 x
Dec. 31 Adjusting Entry v
35,900 X
Dec. 31 Adjusted Balance
789,800 x

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 of 1% of the sales of
$5,100,000 for the year, determine the following:
a. Bad debt expense for the year.
$4
25,500 V
b. Balance in the allowance account after the adjustment of December 31.
$ 789,800 X
c. Expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry).
789,800 X

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions