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 $1,890 cash in full payment of Arlene’s account. Apr. 3. Wrote off the $10,830 balance owed by Premier GS Co., which is bankrupt. July 16. Received 40% of the $19,400 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 $3,080 cash in full payment. Dec. 31. Wrote off the following accounts as uncollectible (one entry): Cavey Co.,$8,145; Fogle Co., $2,420; Lake Furniture, $6,220; Melinda Shryer, $1,760. Dec. 31. Based on an analysis of the $959,100 of accounts receivable, it was estimated that $41,700 will be uncollectible. Journalized the adjusting entry. Required: 1. Record the January 1 credit balance of $39,700 in a T account presented below in requirement 2b for Allowance for Doubtful Accounts. Question Content Area 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 $959,100 balance in accounts receivable reflects the adjustments made during the year. Jan. 19-reinstate Accounts Receivable-Arlene Gurley Allowance for Doubtful Accounts Jan. 19-collection Cash Accounts Receivable-Arlene Gurley Apr. 3 Allowance for Doubtful Accounts Accounts Receivable-Premier GS Co. July 16 Cash Cash Allowance for Doubtful Accounts Allowance for Doubtful Accounts Accounts Receivable-Hayden Co. Accounts Receivable-Hayden Co. Nov. 23-reinstate Accounts Receivable-Harry Carr Allowance for Doubtful Accounts Nov. 23-collection Cash Accounts Receivable-Harry Carr Dec. 31-write-off Allowance for Doubtful Accounts Allowance for Doubtful Accounts Accounts Receivable-Cavey Co. Accounts Receivable-Cavey Co. Accounts Receivable-Fogle Co. Accounts Receivable-Fogle Co. Accounts Receivable-Lake Furniture Accounts Receivable-Lake Furniture Accounts Receivable-Melinda Shryer Accounts Receivable-Melinda Shryer Dec. 31-adjusting Bad Debt Expense Allowance for Doubtful Accounts Feedback Area Feedback Set up T accounts. Recall that under the allowance method, the entry to write off an account debits Allowance for Doubtful Accounts and credits Accounts Receivable. In such cases where an account receivable that has been written off is later collected, the account is reinstated by an entry that reverses the write-off entry. Then record the receipt of cash as payment for the account. The amount of bad debt expense is affected by the balance in the allowance account. Question Content Area 2. b. Post each entry that affects the following T accounts and determine the new balances: Allowance for Doubtful Accounts fill in the blank 65b1b6f84074017_2 Jan. 1 Balance fill in the blank 65b1b6f84074017_3 fill in the blank 65b1b6f84074017_5 fill in the blank 65b1b6f84074017_7 fill in the blank 65b1b6f84074017_9 fill in the blank 65b1b6f84074017_11 fill in the blank 65b1b6f84074017_13 fill in the blank 65b1b6f84074017_15 Dec. 31 Adjusted Balance fill in the blank 65b1b6f84074017_16 Bad Debt Expense fill in the blank 65b1b6f84074017_18 Feedback

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 $1,890 cash in full payment of Arlene’s account. Apr. 3. Wrote off the $10,830 balance owed by Premier GS Co., which is bankrupt. July 16. Received 40% of the $19,400 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 $3,080 cash in full payment. Dec. 31. Wrote off the following accounts as uncollectible (one entry): Cavey Co.,$8,145; Fogle Co., $2,420; Lake Furniture, $6,220; Melinda Shryer, $1,760. Dec. 31. Based on an analysis of the $959,100 of accounts receivable, it was estimated that $41,700 will be uncollectible. Journalized the adjusting entry. Required: 1. Record the January 1 credit balance of $39,700 in a T account presented below in requirement 2b for Allowance for Doubtful Accounts. Question Content Area 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 $959,100 balance in accounts receivable reflects the adjustments made during the year. Jan. 19-reinstate Accounts Receivable-Arlene Gurley Allowance for Doubtful Accounts Jan. 19-collection Cash Accounts Receivable-Arlene Gurley Apr. 3 Allowance for Doubtful Accounts Accounts Receivable-Premier GS Co. July 16 Cash Cash Allowance for Doubtful Accounts Allowance for Doubtful Accounts Accounts Receivable-Hayden Co. Accounts Receivable-Hayden Co. Nov. 23-reinstate Accounts Receivable-Harry Carr Allowance for Doubtful Accounts Nov. 23-collection Cash Accounts Receivable-Harry Carr Dec. 31-write-off Allowance for Doubtful Accounts Allowance for Doubtful Accounts Accounts Receivable-Cavey Co. Accounts Receivable-Cavey Co. Accounts Receivable-Fogle Co. Accounts Receivable-Fogle Co. Accounts Receivable-Lake Furniture Accounts Receivable-Lake Furniture Accounts Receivable-Melinda Shryer Accounts Receivable-Melinda Shryer Dec. 31-adjusting Bad Debt Expense Allowance for Doubtful Accounts Feedback Area Feedback Set up T accounts. Recall that under the allowance method, the entry to write off an account debits Allowance for Doubtful Accounts and credits Accounts Receivable. In such cases where an account receivable that has been written off is later collected, the account is reinstated by an entry that reverses the write-off entry. Then record the receipt of cash as payment for the account. The amount of bad debt expense is affected by the balance in the allowance account. Question Content Area 2. b. Post each entry that affects the following T accounts and determine the new balances: Allowance for Doubtful Accounts fill in the blank 65b1b6f84074017_2 Jan. 1 Balance fill in the blank 65b1b6f84074017_3 fill in the blank 65b1b6f84074017_5 fill in the blank 65b1b6f84074017_7 fill in the blank 65b1b6f84074017_9 fill in the blank 65b1b6f84074017_11 fill in the blank 65b1b6f84074017_13 fill in the blank 65b1b6f84074017_15 Dec. 31 Adjusted Balance fill in the blank 65b1b6f84074017_16 Bad Debt Expense fill in the blank 65b1b6f84074017_18 Feedback

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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Question Content Area

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 $959,100 balance in accounts receivable reflects the adjustments made during the year.

Jan. 19-reinstate	Accounts Receivable-Arlene Gurley
		Allowance for Doubtful Accounts
Jan. 19-collection	Cash
		Accounts Receivable-Arlene Gurley
Apr. 3	Allowance for Doubtful Accounts
		Accounts Receivable-Premier GS Co.
July 16	Cash	Cash
	Allowance for Doubtful Accounts	Allowance for Doubtful Accounts
	Accounts Receivable-Hayden Co.	Accounts Receivable-Hayden Co.
Nov. 23-reinstate	Accounts Receivable-Harry Carr
		Allowance for Doubtful Accounts
Nov. 23-collection	Cash
		Accounts Receivable-Harry Carr
Dec. 31-write-off	Allowance for Doubtful Accounts	Allowance for Doubtful Accounts
	Accounts Receivable-Cavey Co.	Accounts Receivable-Cavey Co.
	Accounts Receivable-Fogle Co.	Accounts Receivable-Fogle Co.
	Accounts Receivable-Lake Furniture	Accounts Receivable-Lake Furniture
	Accounts Receivable-Melinda Shryer	Accounts Receivable-Melinda Shryer
Dec. 31-adjusting	Bad Debt Expense
		Allowance for Doubtful Accounts

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Set up T accounts.
Recall that under the allowance method, the entry to write off an account debits Allowance for Doubtful Accounts and credits Accounts Receivable.
In such cases where an account receivable that has been written off is later collected, the account is reinstated by an entry that reverses the write-off entry. Then record the receipt of cash as payment for the account.
The amount of bad debt expense is affected by the balance in the allowance account.

Question Content Area

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


fill in the blank 65b1b6f84074017_2	Jan. 1 Balance	fill in the blank 65b1b6f84074017_3
fill in the blank 65b1b6f84074017_5		fill in the blank 65b1b6f84074017_7
fill in the blank 65b1b6f84074017_9		fill in the blank 65b1b6f84074017_11
		fill in the blank 65b1b6f84074017_13
		fill in the blank 65b1b6f84074017_15
	Dec. 31 Adjusted Balance	fill in the blank 65b1b6f84074017_16

Bad Debt Expense
	fill in the blank 65b1b6f84074017_18

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Jan. 19.	Reinstated the account of Arlene Gurley, which had been written off in the preceding year as uncollectible. Journalized the receipt of $1,890 cash in full payment of Arlene’s account.
Apr. 3.	Wrote off the $10,830 balance owed by Premier GS Co., which is bankrupt.
July 16.	Received 40% of the $19,400 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 $3,080 cash in full payment.
Dec. 31.	Wrote off the following accounts as uncollectible (one entry): Cavey Co.,$8,145; Fogle Co., $2,420; Lake Furniture, $6,220; Melinda Shryer, $1,760.
Dec. 31.	Based on an analysis of the $959,100 of accounts receivable, it was estimated that $41,700 will be uncollectible. Journalized the adjusting entry.