Dec. 31 Chapter 8 Homework Problem 2 The following transactions were completed by The Peeking Company during the current fiscal year ended December 31: Mar. 30 Received 50% of the $20,000 balance owed by Geeking. Inc., and wrote off the remainder as uncollectible. June 29 Wrote off 54,800 balance owed by Seeking Inc., which has filed bankruptcy. Sept. 20 Reinstated the account of Leaking Co., which had been written off in the preceding year as uncollectible. Journalized the receipt of $10.200 cash in full payment of the account. Wrote off the following accounts as uncollectible compound entry): Reeking Co., $4,500: Teaking, Inc., $3,000 and Weeking Corporation, $2,000. Instructions: 1. Record the January 1 credit balance of $22,000 in a T account for Allowance for Doubtful Accounts. 2. Journalize the transactions. Post each entry that affects the following selected T account and determined the new balances: Allowance for Doubtful Accounts Bad Debt Expense 3. Journalize the adjusting entry to record bad debt expense; if an analysis of the S960.000 of accounts receivable estimates that $20,000 will be uncollectible. 4. Calculate expected net realizable value based upon the results from Part 3. 5. Assume that instead of basing the provision of uncollectible accounts on an analysis of receivables the adjusting entry on December 31 had been based on an estimated expense of 1.5% of net sales of $1,250,000 for the year, determine the following: a. Bad debt expense for the year (by recording a new journal entry) b. Balance in the allowance account after the adjustment from #5 part a. c. Expected net realizable value of accounts receivable using #5 part b