Allowance method entries b$.$ Post each entry that affects the following $T$ accounts and determine the new balances:

Allowance for Doubtful Accounts

Bad Debt Expense

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Determine the expected net realizable value of the accounts receivable as of December $31($after all of the adjustments and the adjusting entry$).$

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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 $\frac{1}{2}$ of $1\%$ the

sales of $$15,800,000$ for the year, determine the following:

a$.$ Bad debt expense for the year.

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

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c$.$ Expected net realizable value of the accounts receivable as of December $31($after all of the adjustments and the adjusting entry$).$

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The following transactions were completed by Wild Trout Gallery during the current fiscal year ended December $31$:

January $19.$

Reinstated the account of Arlene Gurley, which had been written off in the preceding year as uncollectible. Journalized the receipt

of $$2,660$ cash in full payment of Arlene's account.

April $3.$ Wrote off the $$12,750$ balance owed by Premier GS Co$.,$ which is bankrupt.

July $16.$ Received $25\%$ of the $$22,000$ 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

$$4,000$ cash in full payment.

December $31.$ Wrote off the following accounts as uncollectible $($compound entry$)$: Cavey Co$.,$ $$3,300$; Fogle Co$.,$ $$8,100$; Lake Furniture,

$$11,400$; Melinda Shryer, $$1,200.$

December $31.$ Based on an analysis of the $$2,350,000$ of accounts receivable, it was estimated that $$60,000$ will be uncollectible. Journalized

the adjusting entry.

Required:

Record the January $1$ credit balance of $$50,000$ in a $T$ account presented below in requirement $2b$ for Allowance for Doubtful Accounts.

adjustments made during the year.

July $16$

Nov. $23$ Accounts Receivable$-$Harry Carr

Allowance for Doubtful Accounts $$

Nov. $23$

Accounts Receivable$-$Harry Carr $$

Dec. $31$ Allowance for Doubtful Accounts $$

Accounts Receivable$-$Cavey Co$.$