1. Record the January 1 credit balance of $47,900 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 $1,156,900 balance in accounts receivable reflects the adjustments made during the year. Jan. 19-reinstate   fill in the blank a285a300e058043_2         fill in the blank a285a300e058043_4 Jan. 19-collection   fill in the blank a285a300e058043_6         fill in the blank a285a300e058043_8 Apr. 3   fill in the blank a285a300e058043_10         fill in the blank a285a300e058043_12 July 16   fill in the blank a285a300e058043_14 fill in the blank a285a300e058043_15     fill in the blank a285a300e058043_17 fill in the blank a285a300e058043_18     fill in the blank a285a300e058043_20 fill in the blank a285a300e058043_21 Nov. 23-reinstate   fill in the blank a285a300e058043_23         fill in the blank a285a300e058043_25 Nov. 23-collection   fill in the blank a285a300e058043_27         fill in the blank a285a300e058043_29 Dec. 31-write-off   fill in the blank a285a300e058043_31 fill in the blank a285a300e058043_32     fill in the blank a285a300e058043_34 fill in the blank a285a300e058043_35     fill in the blank a285a300e058043_37 fill in the blank a285a300e058043_38     fill in the blank a285a300e058043_40 fill in the blank a285a300e058043_41     fill in the blank a285a300e058043_43 fill in the blank a285a300e058043_44 Dec. 31-adjusting   fill in the blank a285a300e058043_46         fill in the blank a285a300e058043_48 2. b. Post each entry that affects the following T accounts and determine the new balances: Allowance for Doubtful Accounts   fill in the blank 38617dffffc0fc9_2 Jan. 1 Balance fill in the blank 38617dffffc0fc9_3   fill in the blank 38617dffffc0fc9_5   fill in the blank 38617dffffc0fc9_7   fill in the blank 38617dffffc0fc9_9   fill in the blank 38617dffffc0fc9_11       fill in the blank 38617dffffc0fc9_13       fill in the blank 38617dffffc0fc9_15     Dec. 31 Adjusted Balance fill in the blank 38617dffffc0fc9_16 Bad Debt Expense   fill in the blank 38617dffffc0fc9_18

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $2,280 cash in full payment of Arlene’s account.
Apr. 3. Wrote off the $13,060 balance owed by Premier GS Co., which is bankrupt.
July 16. Received 30% of the $23,400 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 $3,715 cash in full payment.
Dec. 31. Wrote off the following accounts as uncollectible (one entry): Cavey Co.,$9,825; Fogle Co., $2,920; Lake Furniture, $7,500; Melinda Shryer, $2,120.
Dec. 31. Based on an analysis of the $1,156,900 of accounts receivable, it was estimated that $50,300 will be uncollectible. Journalized the adjusting entry.

Required:

1. Record the January 1 credit balance of $47,900 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 $1,156,900 balance in accounts receivable reflects the adjustments made during the year.

Jan. 19-reinstate   fill in the blank a285a300e058043_2  
      fill in the blank a285a300e058043_4
Jan. 19-collection   fill in the blank a285a300e058043_6  
      fill in the blank a285a300e058043_8
Apr. 3   fill in the blank a285a300e058043_10  
      fill in the blank a285a300e058043_12
July 16   fill in the blank a285a300e058043_14 fill in the blank a285a300e058043_15
    fill in the blank a285a300e058043_17 fill in the blank a285a300e058043_18
    fill in the blank a285a300e058043_20 fill in the blank a285a300e058043_21
Nov. 23-reinstate   fill in the blank a285a300e058043_23  
      fill in the blank a285a300e058043_25
Nov. 23-collection   fill in the blank a285a300e058043_27  
      fill in the blank a285a300e058043_29
Dec. 31-write-off   fill in the blank a285a300e058043_31 fill in the blank a285a300e058043_32
    fill in the blank a285a300e058043_34 fill in the blank a285a300e058043_35
    fill in the blank a285a300e058043_37 fill in the blank a285a300e058043_38
    fill in the blank a285a300e058043_40 fill in the blank a285a300e058043_41
    fill in the blank a285a300e058043_43 fill in the blank a285a300e058043_44
Dec. 31-adjusting   fill in the blank a285a300e058043_46  
      fill in the blank a285a300e058043_48

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

Allowance for Doubtful Accounts
  fill in the blank 38617dffffc0fc9_2 Jan. 1 Balance fill in the blank 38617dffffc0fc9_3
  fill in the blank 38617dffffc0fc9_5   fill in the blank 38617dffffc0fc9_7
  fill in the blank 38617dffffc0fc9_9   fill in the blank 38617dffffc0fc9_11
      fill in the blank 38617dffffc0fc9_13
      fill in the blank 38617dffffc0fc9_15
    Dec. 31 Adjusted Balance fill in the blank 38617dffffc0fc9_16


Bad Debt Expense
  fill in the blank 38617dffffc0fc9_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 2ed43d078fa2005_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 $7,140,000 for the year, determine the following:

a.  Bad debt expense for the year.
$fill in the blank 2ed43d078fa2005_2

b.  Balance in the allowance account after the adjustment of December 31.
$fill in the blank 2ed43d078fa2005_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 2ed43d078fa2005_4

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