The following transactions were completed by 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. Journalize the receipt of $2,585 cash in full payment of Arlene’s account. Apr. 3. Wrote off the $14,810 balance owed by Premier GS Co., which is bankrupt. July 16. Received 40% of the $26,600 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 $4,215 cash in full payment. Dec. 31. Wrote off the following accounts as uncollectible (compound entry): Cavey Co., $11,140 ; Fogle Co., $3,310 ; Lake Furniture, $ 8,505 ; Melinda Shryer, $2,405. Dec. 31. Based on an analysis of the $1,311,000 of accounts receivable, it was estimated that $57,000 will be uncollectible. Journalize the adjusting entry. 2. b. Post each entry that affects the following T accounts and determine the new balances: Allowance for Doubtful Accounts Jan. 1 Balance Dec. 31 Adjusted Balance Bad Debt Expense

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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The following transactions were completed by 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. Journalize the receipt of $2,585 cash in full payment of Arlene’s account.

Apr. 3.

Wrote off the $14,810 balance owed by Premier GS Co., which is bankrupt.

July 16.

Received 40% of the $26,600 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 $4,215 cash in full payment.

Dec. 31.

Wrote off the following accounts as uncollectible (compound entry): Cavey Co., $11,140 ; Fogle Co., $3,310 ; Lake Furniture, $ 8,505 ; Melinda Shryer, $2,405.

Dec. 31.

Based on an analysis of the $1,311,000 of accounts receivable, it was estimated that $57,000 will be uncollectible. Journalize the adjusting entry.

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

Allowance for Doubtful Accounts
		Jan. 1 Balance




		Dec. 31 Adjusted Balance

Bad Debt Expense

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