Allowance method entries The following transactions were completed by Wild Trout Gallery during the current fiscal year ended December 31: Date Transaction January 19. Reinstated the account of Arlene Gurley, which had been written off in the preceding year as uncollectible. Journalized the receipt of $2,410 cash in full payment of Arlene’s account. April 3. Wrote off the $13,810 balance owed by Premier GS Co., which is bankrupt. July 16. Received 45% of the $24,800 balance owed by Hayden Co., a bankrupt business, and wrote off the remainder as uncollectible. November 23. Reinstated the account of Harry Carr, which had been written off two years earlier as uncollectible. Recorded the receipt of $3,930 cash in full payment. December 31. Wrote off the following accounts as uncollectible (compound entry): Cavey Co., $10,385; Fogle Co., $3,085; Lake Furniture, $7,930; Melinda Shryer, $2,240. December 31. Based on an analysis of the $1,221,300 of accounts receivable, it was estimated that $53,100 will be uncollectible. Journalized the adjusting entry. Required: 1. Record the January 1 credit balance of $50,600 in a T account presented below in requirement 2b for Allowance for Doubtful Accounts. Question Content Area 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 $1,221,300 balance in accounts receivable reflects the adjustments made during the year. Date Account Debit Credit Jan. 19 Jan. 19 Apr. 3 July 16 Nov. 23 Nov. 23 Dec. 31 Dec. 31 Question Content Area 2. b. Post each entry that affects the following T accounts and determine the new balances: Transaction Debit amount Transaction Credit amount fill in the blank 1 of 18 fill in the blank 2 of 18 Jan. 1 Balance fill in the blank 3 of 18 fill in the blank 4 of 18 fill in the blank 5 of 18 fill in the blank 6 of 18 fill in the blank 7 of 18 fill in the blank 8 of 18 fill in the blank 9 of 18 fill in the blank 10 of 18 fill in the blank 11 of 18 fill in the blank 12 of 18 fill in the blank 13 of 18 fill in the blank 14 of 18 fill in the blank 15 of 18 Dec. 31 Adjusted Balance fill in the blank 16 of 18 Transaction Debit amount Transaction Credit amount fill in the blank 17 of 18 fill in the blank 18 of 18 Question Content Area 3. Determine the expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry). fill in the blank 1 of 1$ 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 $7,540,000 for the year, determine the following: a. Bad debt expense for the year. fill in the blank 1 of 1$ b. Balance in the allowance account after the adjustment of December 31. fill in the blank 1 of 1$ 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 1 of 1$

Allowance method entries The following transactions were completed by Wild Trout Gallery during the current fiscal year ended December 31: Date Transaction January 19. Reinstated the account of Arlene Gurley, which had been written off in the preceding year as uncollectible. Journalized the receipt of $2,410 cash in full payment of Arlene’s account. April 3. Wrote off the $13,810 balance owed by Premier GS Co., which is bankrupt. July 16. Received 45% of the $24,800 balance owed by Hayden Co., a bankrupt business, and wrote off the remainder as uncollectible. November 23. Reinstated the account of Harry Carr, which had been written off two years earlier as uncollectible. Recorded the receipt of $3,930 cash in full payment. December 31. Wrote off the following accounts as uncollectible (compound entry): Cavey Co., $10,385; Fogle Co., $3,085; Lake Furniture, $7,930; Melinda Shryer, $2,240. December 31. Based on an analysis of the $1,221,300 of accounts receivable, it was estimated that $53,100 will be uncollectible. Journalized the adjusting entry. Required: 1. Record the January 1 credit balance of $50,600 in a T account presented below in requirement 2b for Allowance for Doubtful Accounts. Question Content Area 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 $1,221,300 balance in accounts receivable reflects the adjustments made during the year. Date Account Debit Credit Jan. 19 Jan. 19 Apr. 3 July 16 Nov. 23 Nov. 23 Dec. 31 Dec. 31 Question Content Area 2. b. Post each entry that affects the following T accounts and determine the new balances: Transaction Debit amount Transaction Credit amount fill in the blank 1 of 18 fill in the blank 2 of 18 Jan. 1 Balance fill in the blank 3 of 18 fill in the blank 4 of 18 fill in the blank 5 of 18 fill in the blank 6 of 18 fill in the blank 7 of 18 fill in the blank 8 of 18 fill in the blank 9 of 18 fill in the blank 10 of 18 fill in the blank 11 of 18 fill in the blank 12 of 18 fill in the blank 13 of 18 fill in the blank 14 of 18 fill in the blank 15 of 18 Dec. 31 Adjusted Balance fill in the blank 16 of 18 Transaction Debit amount Transaction Credit amount fill in the blank 17 of 18 fill in the blank 18 of 18 Question Content Area 3. Determine the expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry). fill in the blank 1 of 1$ 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 $7,540,000 for the year, determine the following: a. Bad debt expense for the year. fill in the blank 1 of 1$ b. Balance in the allowance account after the adjustment of December 31. fill in the blank 1 of 1$ 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 1 of 1$

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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Date	Transaction
January 19.	Reinstated the account of Arlene Gurley, which had been written off in the preceding year as uncollectible. Journalized the receipt of $2,410 cash in full payment of Arlene’s account.
April 3.	Wrote off the $13,810 balance owed by Premier GS Co., which is bankrupt.
July 16.	Received 45% of the $24,800 balance owed by Hayden Co., a bankrupt business, and wrote off the remainder as uncollectible.
November 23.	Reinstated the account of Harry Carr, which had been written off two years earlier as uncollectible. Recorded the receipt of $3,930 cash in full payment.
December 31.	Wrote off the following accounts as uncollectible (compound entry): Cavey Co., $10,385; Fogle Co., $3,085; Lake Furniture, $7,930; Melinda Shryer, $2,240.
December 31.	Based on an analysis of the $1,221,300 of accounts receivable, it was estimated that $53,100 will be uncollectible. Journalized the adjusting entry.

Question Content Area

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 $1,221,300 balance in accounts receivable reflects the adjustments made during the year.

Date	Account	Debit	Credit
Jan. 19

Jan. 19

Apr. 3

July 16


Nov. 23

Nov. 23

Dec. 31




Dec. 31

Question Content Area

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

Transaction	Debit amount	Transaction	Credit amount
fill in the blank 1 of 18	fill in the blank 2 of 18	Jan. 1 Balance	fill in the blank 3 of 18
fill in the blank 4 of 18	fill in the blank 5 of 18	fill in the blank 6 of 18	fill in the blank 7 of 18
fill in the blank 8 of 18	fill in the blank 9 of 18	fill in the blank 10 of 18	fill in the blank 11 of 18
		fill in the blank 12 of 18	fill in the blank 13 of 18
		fill in the blank 14 of 18	fill in the blank 15 of 18
		Dec. 31 Adjusted Balance	fill in the blank 16 of 18

Transaction	Debit amount	Transaction	Credit amount
fill in the blank 17 of 18	fill in the blank 18 of 18

Question Content Area

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 1 of 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 $7,540,000 for the year, determine the following:

a. Bad debt expense for the year.
fill in the blank 1 of 1$

b. Balance in the allowance account after the adjustment of December 31.
fill in the blank 1 of 1$

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 1 of 1$

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