Journalize the following transactions assuming the allowance method is used to account for uncollectible receivables.

05/14 Received 75% of the $20,000 balance owed by Webb Co., a bankrupt business. Wrote off remainder as uncollectible.

06/20 Reinstated the account of Zorn Co., which had been written off in the preceding year as uncollectible. Received $5,225 cash as full payment of zorns account

07/27Wrote off the $2,500 balance owed by Schmich, Inc. which had no assets.12/31Based on an analysis of Accounts Receivable, it is determined that $11,500 will become uncollectible. The balance in Allowance for Doubtful Accounts on December 31 prior to adjustment is $200 credit.

Determine the following:

a)The balance in Allowance for Doubtful Accounts after adjustment

.b)The Net Realizable Value of Accounts Receivable if the balance of Accounts Receivable is $62,000.

c)Redo the entry for 12/31and questions a) and b) if the percent of sales method had been used to estimate uncollectible accounts expenses the rate of of 1% of net sales of $2,000,000.

Journalize the following transactions

a) 9/12Received a $30,000, 12%, 120-day note on account.

b)10/9Received a $15,000, 10%, 60-day note on account

.c)11/15Received an $18,000, 15%, 30-day note on account.

d)12/8Received the amount due on the note of October 9.

e)12/15The note of November 15 was dishonored

.f)12/31Accrued interest on the note of September 12.

At the end of the year, two similar companies were in the process of calculating bad debt expense for the year. Each company had credit sales of $1,000,000 and a debit balance in Allowance for Uncollectible Accounts of $2,000 before any year-end adjustment. The balance of Accounts Receivable is $180,000. Company A estimates that 5% of accounts receivable will not be collected over the next yearDetermine the following:

a)The uncollectible accounts expense for the year.

b)The adjusting entry to be made of December 31.

c)The balance in Allowance for Doubtful Accounts after adjustment.Company B estimates that 5% of credit sales will not be collected over the next year Determine the following:

d)The uncollectible accounts expense for the year.

e)The adjusting entry to be made of December 31

.f)The balance in Allowance for Doubtful Accounts after adjustment.