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 $2,800 cash in full payment of Arlene’s account. Apr. 3. Wrote off the $16,040 balance owed by Premier GS Co., which is bankrupt. July 16. Received 35% of the $28,800 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 $4,565 cash in full payment. Dec. 31. Wrote off the following accounts as uncollectible (one entry): Cavey Co.,$12,070; Fogle Co., $3,585; Lake Furniture, $9,210; Melinda Shryer, $2,605. Dec. 31. Based on an analysis of the $1,419,100 of accounts receivable, it was estimated that $61,700 will be uncollectible. Journalized the adjusting entry. Required: 1. Record the January 1 credit balance of $58,800 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 $1,419,100 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

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 $2,800 cash in full payment of Arlene’s account. Apr. 3. Wrote off the $16,040 balance owed by Premier GS Co., which is bankrupt. July 16. Received 35% of the $28,800 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 $4,565 cash in full payment. Dec. 31. Wrote off the following accounts as uncollectible (one entry): Cavey Co.,$12,070; Fogle Co., $3,585; Lake Furniture, $9,210; Melinda Shryer, $2,605. Dec. 31. Based on an analysis of the $1,419,100 of accounts receivable, it was estimated that $61,700 will be uncollectible. Journalized the adjusting entry. Required: 1. Record the January 1 credit balance of $58,800 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 $1,419,100 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

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

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 $2,800 cash in full payment of Arlene’s account.
Apr. 3.	Wrote off the $16,040 balance owed by Premier GS Co., which is bankrupt.
July 16.	Received 35% of the $28,800 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 $4,565 cash in full payment.
Dec. 31.	Wrote off the following accounts as uncollectible (one entry): Cavey Co.,$12,070; Fogle Co., $3,585; Lake Furniture, $9,210; Melinda Shryer, $2,605.
Dec. 31.	Based on an analysis of the $1,419,100 of accounts receivable, it was estimated that $61,700 will be uncollectible. Journalized the adjusting entry.

Required:

1. Record the January 1 credit balance of $58,800 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 $1,419,100 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

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