Question
Hi,
please help me with this question
Thank you
Bigg Bess Season VHorror Story (2013) FAU Walch Latest Movie Ch 8 Homework Problems Show Me How Allowance method entries The following transactions were completed by Wild Trout Gallery during the current fiscal year ended December 31 an. 19. Reinstated the account of Arlene Gurley, which had been written off in the preceding year as uncollectible. Journalize the receipt of s2,350 cash in full eyment of Ariene's acount. Apr. 3. Wrote off the $13,520 balance owed by Premier GS Co, which is bankrupt July 16, Receved 35% of the $24,300 balance owed by Hayden Co., a bankrupt business, and wrote off the remainder as uncolectitle. Nov. 23. Reinstated the account of Harry Carr, which had been written off two years earlier as uncolect ble. Recorded the receipt of $3,845 cash in full payment Dec. 31. Wrote off the following accounts as uncollectible (compound entry): Cavey Co, $10,170 ; fogle Co., $3,020 ; Lake Fumture, $ 7,765 : Melinds Shryet, $2,195. Based on an analysis of the $1,198,300 of accounts receivable, it was estimated that $52,100 will be uncollectibie. lounaize the adjusting entry 31. Required: 1. Record the January 1 credit balance of $49,600 in a t account presented beson in requirement l for Alowance for Doubthé Accounts 2. a. Joumalize the trarsactions. If an amount box does not require an entry, leave it blank. Note: For the December 31 adjusting entry, assume the $1,198,300 balance in accpunts receivable reflects the adjustments made duting the vear an. 19-reinstate den. 19-collection apr, 3 3 more Check Mr Work uses remaining Next Assignment Score: 0.0% 936 PM
Explanation / Answer
2. Journalise the transactions
Allowance for doubtful accounts
Bad debt expenses
Adjusting entry 48760
3. Net realisable value
198300 - 52100 = 146200
4. a) 37000 (7,400,000 * 0.005)
b) 40340 (37000+3340)
c) 157960 (198300 - 40340)
Date Debit Credit Jan 19 Accounts receivable-Arlene Gurley 2360 Allowance for doubtful accounts 2360 19 Cash 2360 Accounts receivable-Arlene Gurley 2360 Apr 3 Allowance for doubtful accounts 13250 Accounts receivable-Premier GS Co. 13250 July 16 Cash 8505 Allowance for doubtful accounts 15795 Accounts receivable-Hayden co. 24300 Nov 23 Accounts receivable-Harry Carr 3845 Allowance for doubtful accounts 3845 23 Cash 3845 Accounts receivable-Harry Carr 3845 Dec 31 Allowance for doubtful accounts 23150 Accounts receivable-Cavey co. 10170 Accounts receivable-Fogle co. 3020 Accounts receivable-Lake furniture 7765 Accounts receivable-Melinda Shryer 2195 31 Bad debt expenses 48760 Allowance for doubtful accounts 48760 Uncollectible accounts estimate (52100 - 3340)